In a stark warning that underscores the shifting dynamics between North America’s two largest economies, Canadian Prime Minister Mark Carney announced Thursday that Canada must begin preparing for a dramatically different relationship with the United States.
A Break from the Status Quo
Following an emergency cabinet meeting in Ottawa addressing the latest US tariff threats, Carney spoke candidly about the need to rethink Canada’s decades-long reliance on its southern neighbor. His comments marked a pivotal shift in tone just weeks into his premiership.
“The US is no longer a reliable partner”
“We have entered a new phase,” Carney said. “The United States has signaled a departure from mutual trust. While we remain open to constructive dialogue, we cannot expect a return to the old paradigm.”
Carney added that his government would be laying the groundwork for closer cooperation with other global allies, singling out France and the United Kingdom as long-standing partners. His upcoming visits to both countries are aimed at exploring new avenues for trade and diplomatic alignment.
Tariffs Spark Urgency
The growing urgency comes in response to US President Donald Trump’s announcement of a 25% tariff on all imported cars and automotive components. The decision has provoked international backlash, with Carney describing it as a “direct assault” on North American economic cooperation and a clear breach of the US-Mexico-Canada Agreement (USMCA).
“If these tariffs become permanent,” Carney stated, “it will necessitate a complete reevaluation of our security and trade ties with Washington.”
Canada Readies a Counter Strategy
While stopping short of disclosing details, Carney emphasized that Canada would unveil its full response once the US outlines further actions on April 2.
Five Industries in Focus
According to Carney, the Canadian government has identified five sectors targeted by the US:
- Automotive manufacturing
- Forestry and lumber
- Steel and aluminum
- Semiconductors
- Pharmaceuticals
“We’re not going to play whack-a-mole with individual tariffs,” he noted. “Instead, we’re crafting a comprehensive and proportional response.”
The prime minister also confirmed that Trump had reached out for a call, which is expected in the coming days. Though Carney has no immediate plans to visit Washington, members of his cabinet may engage with US counterparts.
Domestic Preparedness and Global Pivot
Carney reassured Canadians that the government is taking steps to shield workers and industries from economic fallout. He emphasized the importance of diversification and reiterated the federal government’s commitment to supporting local manufacturing and innovation.
“There is no silver bullet”
“This will not be quick or easy,” Carney said, warning that the path ahead may be difficult but necessary. “But we are not powerless. We are sovereign. We are masters in our own home.”
In coordination with Mexico, which has also promised a response after April 2, Canada is preparing for a long-haul shift in continental trade relations.
“We will not be bullied. We will act decisively and with purpose to protect Canadian interests,” Carney declared.
