Canada PM Mark Carney says old relationship with US is ‘over’ amid raging tariff war with Trump

Mark Carney's declaration marks a dramatic shift in Canada's foreign policy. He said it is clear that the ‘US is no longer a reliable partner’.

Canada's new Prime Minister, Mark Carney, said on Thursday that the era of traditional relationship with the United States based on economic integration and military cooperation is “over”, even as he suggested impending talks with President Donald Trump over a raging tariff war.

Leader of the Liberal Party of Canada Mark Carney gives a speech to his supporters during a rally at the Grand Quay of the Port of Montreal on March 27, 2025 in Montreal, Canada. A federal election has been called, and Canadian voters will go to the polls on April 28. (AFP)

“The old relationship we had with the United States, based on deepening integration of our economies and tight security and military cooperation, is over. What exactly the United States does next is unclear. But what is clear is that we as Canadians have agency, we have power. We are masters in our own home,” Carney said after an urgent meeting with a cabinet committee on Canada-US relations.

Trump and Carney have not spoken since the new Canadian prime minister assumed office on March 14. The Liberal Party leader said he expects to hold a conversation with the US president in the “next day or two” but did not indicate an improvement in bilateral relations.

US no longer reliable partner

Carney said it is clear that the US is no longer a reliable partner.

“It is possible that with comprehensive negotiations, we will be able to restore some trust, but there will be no turning back. The next government and all that follow will have a fundamentally different relationship with the United States,” he added.

Canada has retaliated with tariffs on US imports worth $41.9 billion in response to Trump's tariffs on Ottawa's exports, including steel and aluminium. Carney's government has also vowed to impose more tariffs on roughly $66 billion worth of American imports in response to Trump's latest 25 per cent tariffs on automobiles with non-domestic components.

Carney opted to wait and watch Trump's trade actions before announcing precise details of retaliatory actions. “We won’t back down. We will respond forcefully. Nothing is off the table to defend our workers and our country,” he said.

The prime minister has called for an election on April 28 to seek a stronger mandate from Canadians in responding to threats from Trump, who has repeatedly urged the neighbouring country to become a “51st US state.” Opinion polls have put him in a tight contest with Pierre Poilievre’s Conservative Party, while the Liberal Party has bettered its perception since Trudeau's resignation.