Canada's government has announced plans to spend C$5 billion (US$3.55 billion) over seven years on ports and infrastructure to reduce trade dependency on the US, reports London's S&P Global.

Transport Minister Steven MacKinnon said the funding will come through the Trade Diversification Corridors Fund. Prime Minister Mark Carney first outlined the plan in March after the Trump administration imposed tariffs on Canadian imports, calling the US no longer a reliable partner.

The fund aims to strengthen trade with reliable partners and double non-US exports over a decade. Transport Canada will administer the fund, while the Canada Infrastructure Bank will decide which projects receive support.

A key component is the C$1.6 billion marine terminal at Contrecoeur, Quebec, backed by C$280 million from federal and provincial governments. Other projects under consideration include West Coast port and rail infrastructure, inland railways and facilities in northeast Quebec.

The budget also proposes new entry points for goods, with customs clearance expanded along the Great Lakes and St Lawrence River. Officials said designating more gateways will catalyze private investment and diversify trade.

Canada's customs agency currently clears containers at five ports: Vancouver, Prince Rupert, Montreal, Saint John and Halifax. A Chamber of Marine Commerce study said adding six more ports could generate C$130 million for businesses in Ontario and Quebec.

Quebec City and Hamilton were cited as potential new gateways. Quebec's port operator QSL has proposed a 500,000-TEU terminal, while Hamilton-Oshawa Port Authority and Canadian National last year began offering intermodal service between Hamilton and Montreal.