Trump’s Tariffs Underscore the Need for Nova Scotia’s Green Hydrogen Sector

The tariffs levied by President Trump on Canada today have reignited public discussion about trade, exports, and economic self-sufficiency. In a world where economic uncertainty is becoming the norm, it is more important than ever for Canada—and Nova Scotia in particular—to strengthen its trade relationships beyond our traditional partners. This is why the emerging green hydrogen sector presents a generational opportunity for Atlantic Canada.

Nova Scotia and Atlantic Canada are uniquely positioned to become leaders in the green hydrogen economy, with an abundance of wind energy and proximity to European markets. Yet, some critics attempt to make the argument that because the bulk of our green hydrogen will be exported, there is no benefit to our region. Not only is this claim this demonstrably false, it ignores a very basic principle covered in most if not all introduction to economics courses:

Exports drive growth.

By expanding its export capacity, Nova Scotia can attract new investment, strengthen supply chains, and drive innovation. A strong export sector not only generates revenue but also enhances economic resilience by reducing dependence on any single market—and what an opportune time to begin developing other markets.

Reducing our reliance on the United States is critical, as the current economic uncertainties created by President Trump highlights the risk of overdependence. In 2024, Nova Scotia’s exports to the United States accounted for a staggering 69.5% of total international goods exports. While this reliance has historically been beneficial, it also leaves Nova Scotia vulnerable to sudden policy shifts, tariffs, and economic disruptions beyond our control.

The green hydrogen sector also presents an opportunity to address Nova Scotia’s significant, and growing, trade deficit. In 2021, the province imported $12.3 billion worth of goods but only exported $6.5 billion, resulting in a trade deficit of $5.7 billion. Europe’s demand for green hydrogen presents a key opportunity to shift the balance. Strengthening trade relationships with European countries not only reduces Nova Scotia’s dependence on the U.S. but also secures access to a growing market that prioritizes clean energy, sustainability, and long-term economic partnerships.

The world is shifting rapidly toward clean energy, and Nova Scotia has a chance to lead rather than lag. Embracing green hydrogen as an export opportunity is about leveraging our natural advantages to build a stronger, more resilient economy.

In an era of global uncertainty, trade diversification and strong European partnerships are not just beneficial—they are crucial.