On the 24th, U.S. President Donald Trump threatened to impose a 100% tariff on Canadian goods entering the United States if Canada “reaches deals” with certain countries. In response, Canadian Prime Minister Mark Carney called on citizens to “Buy Canadian” to counter external threats.
Prior to this, Carney delivered a speech at the World Economic Forum using Canada as an example to argue that “middle powers” should act in coordination to avoid becoming victims of U.S. hegemony. Analysts suggest that Carney’s remarks signal a major shift in Canada’s policy toward the United States.
Trump’s Threats
Following Trump’s latest round of tariff threats on January 25, Canadian Prime Minister Mark Carney urged the public on the 24th to “Buy Canadian” to address external challenges.
In a pre-recorded video posted on his personal social media, Carney stated: “As our economy faces threats from abroad, Canadians have made a choice: to focus on the things we can control.”
While not mentioning the United States by name, Carney reaffirmed the push for a “Buy Canadian” policy. He noted: “We cannot control the actions of other countries. But we can be our own best customers. We will buy Canadian products, and we will build our country with Canadian products.”
On the same day, Carney’s official social media account showcased a 40-second video reviewing his recent visits to China and Qatar, as well as his participation in the World Economic Forum. He stated that he is strengthening partnerships, diversifying trade, and attracting investment to secure greater economic and strategic interests for Canada.
Trump, meanwhile, posted a threat on social media stating that if Canada “reaches deals” with certain countries, he would impose 100% tariffs on all Canadian goods entering the U.S.
This follows a sharp speech by Carney at the World Economic Forum in Davos, Switzerland, where he warned nations against being coerced by great powers—a message widely interpreted as a condemnation of Trump’s leadership.
According to Reuters, Carney argued at the forum that “middle powers” must act together to avoid falling victim to U.S. hegemony. While he did not explicitly name the U.S. or Trump, The New York Times reported on the 22nd that Canada’s decision to “flip the table” on Trump stands in stark contrast to other nations that have resorted to flattery or remained low-key for fear of provoking him.
Rob Precht, a scholar at the University of British Columbia, wrote in a commentary for The Conversation that Carney’s remarks mark a significant turning point in Canada’s U.S. policy.
Trump had previously accused Canada of being ungrateful for U.S. military protection, claiming the country “exists because of the United States,” a claim Carney refuted. Additionally, just one week after Carney signed on to a so-called “Peace Commission,” Trump withdrew Canada’s invitation.
Trump also claimed Canada opposes his planned “Gold Dome” missile defense project. Although Ottawa’s exact stance remains unclear, U.S. Treasury Secretary Scott Bessent stated this week that Trump has invited Canada to participate in the project.
Escalating Tensions
Relations between Washington and Ottawa have deteriorated since Trump’s return to the White House. Trump’s earlier decisions to raise tariffs on Canadian goods sparked outrage, leading many Canadians to boycott American products and cancel trips to the U.S.
A Pew Research Center poll shows that in 2025, 64% of Canadians held a negative view of the United States, the highest level in over 20 years.
The survey further revealed that the percentage of Canadians lacking confidence in President Trump is even higher, at approximately 77%. Ninety percent of respondents described Trump as “arrogant,” and three-quarters viewed him as “dangerous.” Another poll conducted last October by the Angus Reid Institute found that nearly half of Canadians (46%) want the government to view the U.S. as an “enemy or potential threat.”
The U.S. imports approximately 4 million barrels of oil from Canada daily, serving as the primary source of crude for refineries in the American Midwest. The U.S. is also the top buyer of Canadian metals and fertilizers.
Automotive industry executives have warned the Trump administration that tariffs on auto parts—one of Canada’s primary exports—would rapidly disrupt manufacturing activities at U.S. factories.
Historically, three-quarters of Canada’s exports have gone to the U.S., but the trade conflict has already dealt a substantial blow to the Canadian economy. According to Statistics Canada data reported by the CBC, Canadian exports to the U.S. fell by approximately 2% in 2025, partly because tariffs made these goods more expensive for American importers.
In the second quarter of 2025, Canada’s GDP fell at an annual rate of 1.6%, with exports dropping by 7.5%. Bank of Canada Governor Tiff Macklem pointed out that U.S. trade actions and the resulting uncertainty have had a “severe impact” on key industries such as automotive, steel, aluminum, and lumber.
To reduce dependence on the U.S., the Carney government is pushing for an economic transformation centered on “diversification and resilience.” A recent federal budget proposal aims to double exports to non-U.S. markets within the next 10 years. Finance Minister François-Philippe Champagne stated that the plan is designed to transform the Canadian economy “from a dependence on a single trading partner to a stronger economy capable of withstanding global shocks.”
