Carney warns Canada’s trade pivot away from U.S. will come with a cost

Prime Minister Mark Carney is warning Canadians that reducing the country’s economic reliance on the United States will come at a cost, but says the consequences of doing nothing would be far greater.

In a national video address set to be released Tuesday, just hours after Canada’s retaliatory tariffs took effect, Carney outlined his government’s strategy for responding to the ongoing trade dispute with the United States.

The prime minister said Canada will work to develop new trade relationships with countries around the world in an effort to diversify its economy and become less dependent on the U.S. market.

“We have everything we need to pivot and prosper,” Carney said, acknowledging that the transition will not be without challenges.

Carney said there is always a cost to taking action, but argued that the price of standing still would be much higher.

The video is the latest in a series of national updates Carney launched last spring to inform Canadians about government policies and Ottawa’s response to U.S. trade actions.

Carney said the government’s long-term goal is to build a stronger and more resilient Canadian economy that is less vulnerable to pressure from any single trading partner.

He added that Canada must reach a position where “no country can ever hold us hostage” and Canadians can continue to determine their own economic future and way of life.