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Old US-Canada relationship is ‘over,’ warns Canadian prime minister

US-Canada relationship faces fundamental change amid trade threats, Canadian PM warns
March 27, 2025
Max Saltman - CNN

(CNN) — Canada will have to “dramatically reduce” its reliance on the United States as the two countries’ relationship darkens, Canadian Prime Minister Mark Carney warned on Thursday, adding that the old bilateral relationship was “over.”

After holding a cabinet meeting to discuss Canada’s response to US President Donald Trump’s tariffs threats, Carney told reporters in Ottawa that he foresaw the coming of a “fundamentally different relationship” between the two countries.

“The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over,” he said.

“It’s clear the US is no longer a reliable partner. It is possible that with comprehensive negotiations, we could reestablish an element of confidence but there will be no going backwards,” the Canadian leader said, adding that future governments would have to grapple with the same changed dynamic.

“There’s even more to do, and that’s why I chose to go to France and the United Kingdom, two long-standing and reliable partners, friends and allies of Canada,” Carney said, referring to his first international trip as prime minister.

Hours before Carney spoke, Trump wrote on his Truth Social social media platform that Canada and the European Union would face “large scale Tariffs, far larger than currently planned,” if they work together to “do economic harm” to the US.

In Ottawa, Carney said that tariffs imposed by Washington, if permanent, would require “a broad renegotiation of our security and trade relationship with the United States.”

“We will need to dramatically reduce our reliance on the United States,” Carney continued. “We will need to pivot our trade relationships elsewhere, and we will need to do things previously thought impossible at speeds we haven’t seen in generations.”

Trump and Carney are expected to speak by phone in the coming days, he also said, noting that the White House had reached out regarding a call on Wednesday night. Though he has no plans to visit Washington, Carney – who became prime minister less than two weeks ago – said it is “possible” members of his cabinet may make the trip.

Canada ‘will respond forcefully’

Carney’s latest comments follow Trump’s declaration on Wednesday of a 25% tariff on all cars and car parts shipped to the US. The move drew global criticism; Carney deemed it a “direct attack” that violated the US-Mexico-Canada trade agreement.

Carney on Thursday promised a strategy of “retaliatory trade actions” to be unveiled after Trump makes an expected announcement on April 2 regarding the US’s next steps.

“This is a negotiation,” Carney said, declining to go into specifics. “It doesn’t make sense to tip your hand and say what you’re going to do going forward.”

The prime minister noted that his government understands the US tariffs strategy to be focused on five key sectors — the automotive industry, lumber, steel and aluminum, semiconductors, and pharmaceuticals.

“We have a number of measures that we can take in response to those initiatives,” Carney continued, adding that it “doesn’t make sense” to respond individually to each measure from the US.

“We’re going to know a lot more in a week and we will respond then,” he said.

Carney’s wait-and-see approach aligns with that of Mexican President Claudia Sheinbaum, who told reporters on Thursday morning that Mexico would also announce its own tariff plans after April 2.

“We will respond forcefully. Nothing is off the table to defend our workers and our country,” Carney said, warning Canadians that “there is no silver bullet, there is no quick fix” in a trade war.

“I reject any attempts to weaken Canada, to wear us down, to break us so that America can own us,” Carney also said.

Carney also reiterated his government’s ongoing domestic policies to cushion the blow of expected US tariffs for Canadian workers and businesses.

“We are masters in our own home,” Carney said, a line he often uses in public remarks, echoing an old slogan in Québec politics.

This story has been updated with additional information.

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