Canada's Push for Trade Diversification Still in Focus Amid US Trade War, BMO Says

07:49 AM EST, 11/05/2026 (MT Newswires) -- Canada's policy shift toward trade diversification "remains a major story" as data showed recently the US share of Canadian exports dropped below 70% from over 75% before the nations' trade war began, BMO Capital Markets said in a note. Factors outside of tariffs, such as higher exports of gold to countries outside of the US, are aiding the drive, BMO Senior Economist Shelly Kaushik said in the note. "Still, the briskness of the decline since February 2025 isn't a coincidence." The trend is similar for imports, with the US share falling below 60%. Rising investment in data centers has fuelled a sharp increase in computer equipment imports from Asia, the economist said. Attention is shifting to how this week's US midterm elections could affect trade policy, BMO said. "Even if there are no meaningful changes to the tariff regime, a little bit of certainty will go a long way," Kaushik said.