Carney Calls US Ties a Weakness Amid Trade Review

Canadian Prime Minister Mark Carney stated in a video address on April 19 that the country's historically strong economic ties with the United States have become weaknesses due to recent U.S. trade policies, according to multiple reports.

The prime minister emphasized that businesses are holding back investments because of uncertainty caused by these policies. Carney specifically mentioned how tariffs imposed by President Trump have affected workers in the auto, steel, and lumber industries. He also noted that Canada must diversify its economic partnerships to reduce reliance on the U.S., as reported by Reuters, The Guardian, and HuffPost.

Carney's comments come after his Liberal Party government secured a parliamentary majority in special elections earlier this month. He plans to give regular updates on efforts to diversify Canada's economy away from the U.S., according to CBS News. The prime minister also referenced historical figures who resisted U.S. expansionism during the War of 1812, illustrating that 'Canada can't control the disruption coming from our neighbors,' as reported by Reuters.

A review of the current version of the North American Free Trade Agreement (NAFTA) between Canada, the U.S., and Mexico is scheduled for July. In his address, Carney emphasized attracting new investments into Canada, doubling clean energy capacity, reducing trade barriers within the country, increasing defense spending, lowering taxes, and making housing more affordable.

Canada will not allow the United States to simply dictate the terms for a scheduled review of the United States-Mexico-Canada (USMCA) treaty, Carney said on Wednesday. Mexico has already held two rounds of talks with the U.S. about the review and will hold its first formal round of negotiations next month. No date has been announced for any talks involving Canada.

The review is due to be complete by July 1. Former Quebec premier Jean Charest, who sits on a panel advising Carney on Canada-U.S. economic relations, told Radio-Canada that Washington was seeking 'a lot of concessions from Canada' before talks began. 'It's not a case that the United States dictates the terms. We have a negotiation; we can come to a mutually successful outcome — it will take some time,' Carney told reporters.

President Donald Trump last year imposed tariffs on key imports from Canada, prompting Canada to respond with countermeasures. Carney says Trump's actions mean Canada needs to diversify trade and cut its heavy reliance on the United States. Canada's chief trade negotiator with the U.S., Janice Charette, said on Tuesday that she did not expect Canada and the U.S. to resolve all issues by July 1, but that would not mean the North American trade agreement would collapse.

Prime Minister Mark Carney stated that US liquor could return to Canadian shelves if tariffs on metals and automobiles are addressed, according to BBC. 'Issues such as decisions on which alcohol to put on the shelves - we can make progress very quickly on that with progress in other areas,' Carney said on Thursday. The ban by most Canadian provinces is a response to tariffs placed from the Trump administration.

US Commerce Secretary Howard Lutnick called the liquor ban 'disrespectful', while US Trade Representative Jamieson Greer warned of consequences if the issue is not resolved, per BBC. Ontario's liquor control board removed US-made alcoholic drinks from shelves in March 2025.

The back and forth comes as Canada, the US and Mexico are staring down a deadline of 1 July for a mandatory review of the USMCA. 'There's two parties in a negotiation,' Carney told reporters on Thursday. 'We're not sitting here taking notes and taking instruction from the US.'

Ontario Premier Doug Ford has been steadfast in his position that the booze will not go back on the shelves in provincial stores until these sector-specific tariffs are dropped, according to BBC. Speaking to CNN on Thursday, Ford said the American economy is losing 'tens of billions of dollars' as a result of Canadians boycotting the US.