Canadian Prime Minister Mark Carney called on his country to reduce economic dependence on the United States, releasing a 10-minute video address Sunday in which he described formerly close trade ties as a weakness that must be corrected. Carney cited Trump’s tariffs—raised to levels unseen since the Great Depression—as evidence the U.S. approach to trade has fundamentally shifted.
The address signals a strategic pivot for Canada as Trump pursues tariff-based trade policy that has destabilized North American commerce. A scheduled review of the North American Free Trade Agreement in July will test whether the two countries can repair strained relations.
Carney Maps Out Canada’s Economic Pivot From U.S.
In a 10-minute video address released Sunday, Canadian Prime Minister Mark Carney laid out what amounts to a fundamental reorientation of Canada’s economic strategy, declaring that the close trade relationship that once anchored Canadian prosperity has become a liability that must be fixed.
“Many of our former strengths, based on our close ties to America, have become weaknesses. Weaknesses that we must correct,” Carney said in the address. He pointed to President Trump’s tariff regime—raised to levels last seen during the Great Depression—as evidence the U.S. approach to trade has undergone a permanent shift.
The Canadian auto and steel industries have felt the tariff impact directly, Carney noted. Beyond immediate tariff costs, he said, the broader uncertainty is restraining business investment. “Businesses are holding back investments, restrained by the pall of uncertainty that’s hanging over all of us,” he said.
Canadians themselves have registered their anger over the broader U.S. posture. Trump’s suggestion, made in earlier remarks, that Canada could become the 51st state, drew particular ire. Carney pledged regular public updates on the government’s diversification strategy. “I promise you I will never sugarcoat our challenges,” he said.
The address came after Carney secured a majority government following recent special-election wins—putting him in a stronger position to pursue the economic realignment he is proposing. The opposition Conservatives have been pressing him to secure a new U.S. trade agreement, a commitment he made during last year’s campaign. A scheduled review of the North American Free Trade Agreement is set for July.
Davos Speech and Trump’s Response
Carney has repeatedly made this argument. In January, at the World Economic Forum in Davos, Switzerland, he delivered remarks condemning economic coercion by great powers against smaller nations—remarks that drew widespread praise. Trump responded sharply. “Canada lives because of the United States,” Trump said at the time. “Remember that, Mark, the next time you make your statements.”
The remark highlighted the escalating friction between Ottawa and Washington as Trump pursues an explicit strategy of using tariffs as a tool of leverage across multiple trading relationships.
Diversification and Domestic Investment
Carney outlined a multifaceted agenda to build Canadian economic resilience. He aims to attract new foreign investment, double the country’s clean energy capacity, and reduce internal trade barriers within Canada itself—removing regional restrictions that limit the free movement of goods and services between provinces.
The government is also increasing defense spending, cutting taxes to stimulate business activity, and working to improve housing affordability—an area of significant political pressure in Canada where real-estate costs have outpaced wage growth.
Carney was explicit about the underlying logic. “We have to take care of ourselves because we can’t rely on one foreign partner,” he said in the address. “We can’t control the disruption coming from our neighbors. We can’t control our future on the hope it will suddenly stop. We can control what happens here. We can build a stronger country that can withstand disruptions from abroad.”
He rejected what he called passive approaches to the challenge. “Hope isn’t a plan and nostalgia is not a strategy,” Carney said, an apparent reference to the long-standing assumption in Canadian political circles that U.S.-Canada ties would eventually stabilize along historical lines.
“The U.S. has changed and we must respond,” he concluded. “It’s about taking back control of our security, our borders and our future.”