Carney says Canada's deep economic ties to the US are now a liability

Canadian Prime Minister Mark Carney made a blunt assessment this weekend: the country's deep economic ties to the United States, long seen as a cornerstone of stability, have become a liability. In a 10-minute national address released Sunday morning, Carney argued that global shifts-especially the unpredictable trade stance of President Trump's administration-have turned what was once an advantage into a point of vulnerability.

"We built our economy on access to the U.S. market, and that served us well for decades," Carney said. "But the world is more dangerous and divided than it was. Relying so heavily on one partner, especially one with erratic policies, is no longer a strength-it's a risk we can't ignore." He pointed to recent U.S. tariff threats on Canadian aluminum and auto parts as evidence that the relationship can no longer be taken for granted.

To counter the imbalance, Carney announced a push to accelerate trade talks with India, Indonesia, and members of the Pacific Alliance in Latin America. His government is also rolling out new tax incentives for companies that establish supply chain links outside North America. The goal, he said, is to ensure Canada isn't caught flat-footed if U.S. policy shifts again.

The remarks reflect a growing unease among Canadian officials about the reliability of their largest trading partner. While Canada and the U.S. share one of the most integrated economies in the world, with billions in daily cross-border trade, that closeness now feels like a double-edged sword. Past disputes under Trump, including steel tariffs and threats to withdraw from USMCA, still shape Ottawa's planning.

Carney, a former central banker and international finance expert, has spent much of his first year in office reworking Canada's economic playbook. This latest move is part of a broader strategy to position the country as more globally agile-not just a northern extension of U.S. supply chains.

Reaction in the U.S. has been muted so far. The White House has not commented, but some Republican lawmakers criticized Carney's remarks as ungrateful, given the volume of trade that flows between the two countries. Meanwhile, business leaders in Canada are cautiously supportive, though many warn that diversifying trade won't happen quickly or easily.

Still, the message from Ottawa is clear: in today's climate, overreliance on any single economy-even a neighbor-comes with real costs. And Canada is ready to start hedging its bets.