Over the last several decades, the US-Canada partnership has generated significant investment of capital, economic growth and employment for both countries. The integrated nature of these two economies has made North America one of the most prosperous regions on the planet. Today, the relationship between both nations is evolving.  

As BMO Financial Group’s CEO Darryl White said in his remarks to kick off the 3rd annual US-Canada Summit hosted by BMO and Eurasia Group, trade talks between the countries may be challenging, but they are also an opportunity to strengthen their relationship. “While it is hard to be sure how these trade talks will conclude, we do know they will determine the future of North American free trade,” he said.  

Happening on the heels of Canadian Prime Minister Mark Carney’s recent meeting with U.S. President Donald Trump in the Oval Office, the US-Canada Summit convened some of the best experts in their fields to discuss the relationship between the two nations. 

One of the key points from the Summit’s co-host, Ian Bremmer, President and Founder of Eurasia Group and GZERO Media, is that the tone in the conversations between the U.S. and Canada has changed. In the U.S., there is now a higher level of respect for Canadian sovereignty, which reflects meaningful progress, he said. Canada’s new government has shifted its approach, which is also positive, he added. 

Ali Velshi, senior economic and business correspondent for NBC News, moderated a discussion with Bremmer and noted that countries all over the world, including Canada, are starting to diversify their trade in response to U.S. tariffs. He asked Bremmer if that pivot could have a negative impact on U.S. economic influence.  

Bremmer dismissed that notion, especially when it comes to Canada and the U.S.  

Indeed, in his remarks White said the importance of the U.S.-Canada relationship is clear. By country, Canada is the largest market for U.S. exports amounting to $350 billion last year, while Canada’s merchandise trade with the U.S. is larger than China and the U.K. combined. 

White stressed the urgency to find a resolution that benefits both nations. “The math in the moment is clear through the first eight months of this year,” he said. “Two-way trade between Canada and the U.S. has declined by $15 billion compared to that same period in 2024.” 

In terms of the impact the shifting trade patterns could have, Bremmer expects the U.S. will continue to operate from a position of strength. The U.S. economy will likely continue to attract the world’s best talent, he noted., adding that China is the only competition. 

“If you want to invest in the next big thing, they are either happening in America or China,” he said.  

While the U.S. and Canada work on a path forward for trade, White said he hopes renewed efforts of Canada’s political and business class to improve competitiveness, including reducing interprovincial trade barriers, don’t fall by the wayside.  

“We cannot let the air come out of that balloon,” he said, about Canada’s need to innovate and improve its own economy. That includes boosting infrastructure, reducing regulatory burdens and addressing tax reform – including prioritizing in-year depreciation for capital projects to level the playing field with the U.S.  

“These are refreshing goals, but it is time for action,” he said. “The next 10 years are not going to look like the last 10 years.”