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Canada’s Carney Says Reliance on U.S. Left Nation Vulnerable

(MENAFN) Canadian Prime Minister Mark Carney has declared that decades of economic dependence on the United States have left Canada dangerously exposed, calling on Ottawa to urgently diversify its trade relationships as tensions with Washington continue to intensify.

The scale of that dependence is stark. According to Scotiabank, the U.S. absorbed 72% of Canada's total exports in 2025 — a concentration that Carney now openly describes as a strategic liability.

The bilateral relationship has deteriorated sharply since Donald Trump returned to the White House in January, with the U.S. president imposing sweeping tariffs on Canadian goods and repeatedly dismissing Canada as "the 51st state." Carney has drawn a firm line in response, pledging that his country "will never, ever, in any way, shape, or form, be part of the United States."

Addressing Canadians in a video statement on Sunday, the prime minister framed the moment as a fundamental turning point in the country's economic identity.

"Many of our former strengths, based on our close ties to America, have become our weaknesses - weaknesses that we must correct," Carney said, adding that the "US has changed" and cautioning that it is unlikely the "good old days will come back."

"We can't rely on one foreign partner," the prime minister continued, stressing the importance of "striking new partnerships abroad so we can sell into new markets."

Carney also struck a historically defiant note, invoking the War of 1812 — in which Canadian forces repelled a U.S. military advance — to underscore his message that "we've faced down threats like this before."

The pivot away from Washington is already taking shape. In January, Carney traveled to Beijing for direct talks with Chinese President Xi Jinping, signaling a meaningful warming of ties that had been strained for years. The two leaders concluded a preliminary 'agreement-in-principle' reducing tariffs on select goods, with the potential to establish a "new strategic partnership" between the two countries.

Speaking to reporters following those discussions, Carney drew an explicit contrast between the two relationships, stating that "in terms of the way that our relationship has progressed in recent months with China, it is more predictable" than relations between Canada and the US.

Trump pushed back swiftly, warning that it was "very dangerous" for Canada to "get into business with China." The U.S. president threatened to impose a blanket 100% tariff on all Canadian goods should Ottawa proceed with the Beijing trade deal, and further claimed that China was "completely taking over" Canada — a country he suggested was only staying afloat "because of the United States."

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