Prime Minister Mark Carney at the third annual US-Canada Summit, hosted by BMO and Eurasia Group, described how Canada is repositioning itself on the global stage and managing its evolving relationship with the United States. 

Roughly 24 hours after an Oval Office meeting, Carney addressed a standing-room-only audience eager to hear what progress he had made in his talks with U.S. President Donald Trump on trade and improving bilateral ties. Carney, speaking live to the audience remotely, acknowledged the strength of the ties between the two countries and the importance of that relationship to Canada, but he also said that it is changing.  

“There is still a very deep, enduring and reinforcing relationship between Canada and the United States and, as Canadians, we benefit from that,” he said. However, “nostalgia isn't a strategy. Our relationship will never again be what it was.”  

Carney was quick to add that his comments shouldn’t be seen as a criticism or as a suggestion that the bond between Canada and the U.S. is weakening. Instead, he said that given the two countries already have the highest degree of integration and the most open trade, the relationship can evolve – and so can Canada’s trade with other markets. 

As for what that means for the USMCA, Carney said while it’s the best trade deal the U.S. has with any trading partner, his focus is on how to make it better. Currently, 85% of Canada’s trade with the U.S. is tariff free, resulting in an average effective tariff rate of 5.5%. The focus of the ongoing discussions for the USMCA revolves around Section 232, a provision in the Trade Expansion Act of 1962 that allows the U.S. President to impose tariffs and restrictions on imports that are seen as threatening national security. 

While the USMCA is an important agreement, Carney recognized that not every trade issue will be addressed in the tri-lateral agreement, noting that Canada could ink bilateral deals with the U.S. “It’s not an either-or, necessarily,” he said. “That's one of the realities of the negotiations.” 

Carney’s focus isn’t entirely on the U.S. “I don't get up first thing in the morning to think about the U.S. relationship, just to be clear, much as I love the U.S.,” he said. “I think about building Canada.” 

At home, housing, nation-building projects and a competitive tax system are priorities, he said, with an eye to removing barriers to Canadian energy and entrepreneurship that will create jobs, entice talent and attract investment.  

Carney also underscored Canada’s commitment to strengthening global partnerships while deepening its strategic ties with the U.S.