Canadian Prime Minister Mark Carney said his country’s longstanding economic partnership with the United States has turned into a liability, pointing to sweeping tariffs imposed by President Donald Trump that have strained cross-border trade.

In a video address released Sunday, Carney argued that Washington’s recent trade policies mark a significant shift.

The United States has “fundamentally changed its approach to trade, raising its tariffs to levels last seen during the Great Depression.”

He said the evolving relationship has altered Canada’s economic position in a fundamental way.

This has meant that “many of our former strengths, based on our close ties to America, have become our weaknesses — weaknesses that we must correct.”

Carney’s remarks come as tensions escalate between the two countries following the imposition of tariffs that have disrupted decades of cooperation. Among the measures is a broad 10% tariff applied to goods not covered under the Canada-U.S.-Mexico trade pact, known as CUSMA.

Additional duties have targeted key industries, including a 50% tariff on Canadian goods primarily composed of steel, aluminum, or copper, along with a 25% levy on products largely made from those materials. Certain categories of heavy machinery exported from Canada now face tariffs of 15% when entering the U.S.

Canadian officials say the economic consequences have been severe, affecting multiple sectors and creating widespread uncertainty.

Ottawa says the effect of these measures has been profound, “displacing workers, disrupting supply chains, forcing companies to rethink where they source their materials and products, and causing uncertainty that is curbing investment.”

While Canada still benefits from relatively favorable terms compared to other U.S. trading partners, Carney acknowledged that the reliance on American markets can no longer be taken for granted.

“we cannot rely on our most important trade relationship as we once did. We must build our strength at home,” Carney said.

He added that key industries are feeling the pressure from the tariffs.

“Workers in our industries most affected by U.S. tariffs in autos and steel and lumber are under threat,” he said. “Businesses are holding back investments restrained by the pall of uncertainty that’s hanging over all of us.”

Amid the ongoing trade conflict and President Trump’s repeated suggestion that Canada could become the “51st state,” Carney’s government moved earlier this year to strengthen ties with China. In January, Canada and China reached an agreement to ease certain tariffs on each other’s goods.

Under the deal, China reduced duties on Canadian agricultural exports, while Canada cut tariffs on tens of thousands of Chinese-made electric vehicles.

President Trump criticized the agreement and warned of potential retaliation.

“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric and general way of life,” the U.S. president asserted.

Despite that criticism, Carney defended efforts to diversify Canada’s trade relationships, emphasizing the need for broader economic independence.

“We will attract new investment so we can build more for ourselves, striking new partnerships abroad so we can sell into new markets.

“It’s about taking back control of our security, our borders and our future.”

{Matzav.com}