Canada Seeks to Diversify Economy Amid US Trade Tensions

Canada's Prime Minister Carney acknowledged that the country will experience short-term pain due to the recent US tariffs, but said it pushes Canada to move faster on investment, infrastructure, and trade diversification. He contrasted Canada's deteriorating relationship with Washington with its growing ties to more reliable countries.

'For the past year and a half, we have been steering our economy toward trusted partners,' he said. 'It was easy business, but it meant we relied too much on one economic partner.'

Carney defended Canada's decision to retaliate against US tariffs, saying that Canada is matching the measures dollar for dollar while supporting affected workers and industries. He added that the country is accelerating efforts to expand trade with other countries.

The Canadian Prime Minister also defended his government's decision to walk away from trade talks with Washington, citing concerns over limits on French-language and cultural protections, influence over future trade deals, and terms that would weaken the auto, steel, and forestry sectors.