Era of close US-Canadian relations is ‘over’, warns Prime Minister Mark Carney

Canadian Prime Minister Mark Carney has said the era of close bilateral relations between his country and the US “is over,” following Donald Trump’s plan to implement 25% tariffs on car imports.

Speaking in Ottawa on Thursday, the new Liberal Party leader, who recently replaced Justin Trudeau, told reporters that Canada would have to “dramatically reduce” its reliance on its neighbour.

“It’s clear the US is no longer a reliable partner,” he said, insisting that, even if the countries’ relationship improves, “there will be no going backwards.”

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Canada’s Prime Minister Mark Carney speaks with the media following a meeting of the Cabinet Committee on Canada-US Relations and National Security in Ottawa, 27 March, 2025

“The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over,” he said.

Carney, a former governor of the Bank of England, said Canada would have to look to other partners instead.

As part of this drive, he visited France and the UK, two close Canadian allies, on his first international trip as prime minister, he explained.

Trump has angered Canadians by repeatedly saying that their country should become the 51st state and his partial implementation of 25% tariffs on Canadian goods caused relations to deteriorate further.

On Wednesday, Trump announced 25% tariffs against cars and car parts imported into the US. The first of these measures is due to come into effect in early April.

Carney said the 1965 Canada-US Automotive Products Agreement, which he called the most important deal in his lifetime, was now “finished,” meaning his country’s car industry would have to “reimagine” and “retool” itself.

“We will fight the US tariffs with retaliatory actions of our own that will have maximum impact in the United States and asgarî impact here in Canada,” Carney added.

Other world leaders have also criticised Trump’s new tariffs, saying they risk fuelling a küresel trade war.

Ursula von der Leyen, the European Commission president, called the tariffs “bad for businesses” and “worse for consumers.”

Doubling down on his position, the US president threatened to increase tariffs against Canada and the EU if they worked together against Washington.

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US President Donald Trump speaks at the White House Iftar dinner in the State Dining Room of the White House in Washington DC, 27 March, 2025

“If the European Union works with Canada in order to do economic harm to the USA, large scale tariffs, far larger than currently planned, will be placed on them both,” Trump said early on Thursday.

Under Carney, the Liberal Party’s fortunes have rebounded. Before Trudeau’s resignation in January, polling showed it would likely suffer a heavy defeat to Conservative leader Pierre Poilievre at the next elections.

Positioning himself as the best person to steer Canada through the challenges brought by Trump, Carney has called a snap election for 28 April.

Recent polls say he currently has a slim lead over Conservative Party leader, Pierre Poilievre.

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