In a video address reported by The Guardian, Carney said ties that were once a strength must now be “corrected,” warning that the global environment has become “more dangerous and divided.” He pointed to a fundamental shift in Washington’s trade strategy, with tariffs rising to levels not seen since the Great Depression, directly affecting economies closely tied to the US.

The Canadian leader stressed that relying on hopes of a return to past economic stability with the US was unrealistic. Instead, his government is pursuing a strategy to broaden partnerships, including signing trade agreements with other countries and actively seeking foreign investment into Canada.

Carney highlighted concrete measures aimed at strengthening the domestic economy, including boosting clean energy capacity, reducing internal trade barriers, and making Canada a more attractive destination for global investors. These steps form part of a wider push to reduce dependence on a single trading partner and build resilience against external shocks.

The shift comes amid growing tensions with Washington, where tariff measures imposed under US President Donald Trump have had a direct impact on Canadian industries. Workers in key sectors such as steel and automotive manufacturing have been among the hardest hit, with tariffs disrupting exports and creating uncertainty for businesses.

Carney noted that this uncertainty has led many firms to delay investment decisions, further slowing economic momentum. He warned that Canada cannot “control the disruption” coming from its neighbour and must instead take proactive steps to secure its own economic future.

The prime minister’s remarks signal a broader recalibration of Canada’s economic strategy, as Ottawa seeks to pivot away from heavy reliance on the US and position itself within a more diversified global trade network.