Carney Says Canada’s Reliance on the U.S. Economy Is Now a Weakness

Canadian Prime Minister Mark Carney said Sunday that his country’s close economic ties to the United States, once a strength, have become a weakness that must be corrected, the Associated Press reported. He made the remarks in a 10-minute video address to Canadians.

“The U.S. has fundamentally changed its approach to trade, raising its tariffs to levels last seen during the Great Depression,” Carney said. “Many of our former strengths, based on our close ties to America, have become weaknesses. Weaknesses that we must correct.” He said U.S. tariffs have hit Canadian auto and steel workers, and that businesses are holding back investment, “restrained by the pall of uncertainty that’s hanging over all of us,” according to the AP. NPR added that lumber workers have also been affected.

Carney rejected waiting for conditions to improve. “Hope isn’t a plan and nostalgia is not a strategy,” he said, adding that simply hoping the “United States will return to normal” is not feasible. He said Canada has “been a great neighbor” that stood with the U.S. in Afghanistan and two world wars, but that “the U.S. has changed and we must respond.” NPR’s Jackie Northam noted that Carney never named President Trump.

The prime minister outlined a plan NPR called “Canada Strong”: attracting new investment, signing trade deals with other countries, doubling clean energy capacity and reducing trade barriers between Canadian provinces. He also pointed to higher defense spending, tax reductions and efforts to make housing more affordable, the AP reported, and promised regular updates on diversifying away from the U.S.

The speech comes days after Carney secured a parliamentary majority through special election wins, the AP and NPR reported. The opposition Conservatives are pressing him to deliver a trade deal with Washington, a promise from last year’s election, according to the AP. A review of the three-nation trade agreement among Canada, the U.S. and Mexico is scheduled for July, and NPR said early signs are that the talks will be contentious.

Mr. Trump has angered many Canadians by suggesting Canada become the 51st state, and the AP reported there was no immediate White House reaction to the address. After Carney’s January speech at the World Economic Forum in Davos, in which he condemned economic coercion by great powers, Mr. Trump said, “Canada lives because of the United States. Remember that, Mark, the next time you make your statements.” NPR noted that Canadian boycotts of American-made goods and of travel to the U.S. have hurt American businesses.