Canadian Prime Minister Mark Carney was sworn in less than two weeks ago. He has been quick to remind us and others of the perilous direction US-Canada relations are heading. Carney re-iterated the significant impacts that could result from the new US tariff approach. He condemned it as a “dangerous and direct attack” that violates the current US-Mexico-Canada trade agreement already in place. Carney told us he has no immediate plans to visit Washington. That doesn’t mean he’s not sending some of his cabinet there or establishing embassies there soon.
Carney expressed serious concerns regarding the US tariffs, which target five critical sectors: the automotive industry, lumber, steel and aluminum, semiconductors, and pharmaceuticals. In particular, he warned that all of these moves endanger Canada’s long-term economic prosperity. He further announced that Canada should “dramatically reduce” its dependence on the United States as a trading partner.
“We will need to dramatically reduce our reliance on the United States.” – Mark Carney
In reaction to these short-lived advancements, Carney promised Canadians a new form of governance. Most notably, they are actively developing domestic policies to shield Canadian workers and businesses from the anticipated impact of the US tariffs. He opened his remarks saying that he does not pretend to have an easy answer to the deep challenges posed by a trade war.
“There is no silver bullet, there is no quick fix.” – Mark Carney
Carney made clear that it would be unhelpful to react to every US measure one-by-one. He pledged to release an all-of-government approach in July for “retaliatory trade actions.” This would come just a few weeks after the anticipated US announcement on April 2. We believe this approach would best serve to protect Canadian interests, without putting their strategic intentions on the world stage too early.
“It doesn’t make sense to tip your hand and say what you’re going to do going forward.” – Mark Carney
He further assured the public that Canada is poised to act quickly and efficiently should strong action become warranted.
“We will respond forcefully. Nothing is off the table to defend our workers and our country.” – Mark Carney
Throughout his address, Carney highlighted his singular focus on preserving Canada’s sovereignty and fortitude in the face of global headwinds.
“I reject any attempts to weaken Canada, to wear us down, to break us so that America can own us.” – Mark Carney
Carney’s comments signal a potential shift in Canada’s trade strategy, emphasizing resilience and adaptability in the face of evolving economic challenges.
