Trump and Canada: Mark Carney's rise and Canada's turn away from the US

The Liberal Party chose Carney as its leader in March 2025 with 85.9% of the vote. He had helped run two Group of Seven economies through crises, including as head of the Bank of England.^[1][13] He was sworn in days later^[14] and made his first foreign trip to Europe rather than the United States.^[15] He called a snap election,^[16] said the old relationship with the United States was "over" and that Canada would have to "dramatically reduce" its reliance on it,^[17] and lamented the lost friendship on a visit to Gander, Newfoundland, the town that sheltered stranded American passengers after the September 11 attacks.^[18] The Liberals won the April election in a comeback widely seen as a rebuke of Trump, though they fell just short of a majority,^[2][19] and Conservative leader Pierre Poilievre, long the favorite to become prime minister, lost his own seat.^[20]

Carney's hold on power grew in 2026. In April, floor crossings and two special election wins gave the Liberals a majority,^[3] and in September they swept three more special elections, taking one seat from the Conservatives, in a result Carney called an endorsement of his government's approach.^[21]

Defense was one way to reduce Canada's reliance on its neighbor. Canada and European countries questioned whether buying US weapons such as the F-35 fighter was still wise,^[22] and in June 2025 Carney said Canada would meet NATO's military spending target years ahead of its earlier plan and diversify its defense spending away from the United States.^[4] Canada signed a defense pact with the Philippines in November^[23] and joined the EU's 150 billion euro defense loan program, known as SAFE, in December.^[24] In July 2026, Carney said Trump had "won the argument" on NATO defense spending.^[25]

Trade was another. In January 2026, Carney hailed a "strategic partnership" with Chinese leader Xi Jinping in Beijing and, breaking with the United States, agreed to cut Canada's 100% tariff on Chinese electric cars in return for lower tariffs on Canadian farm products.^[26][27] In April he said Canada's close economic ties to the United States had become a "weakness" and set out plans to expand trade beyond it.^[5] He deepened ties with the Philippines in July,^[28] aimed to conclude trade talks with India by the G20 summit in December,^[29] and in October made the first bilateral visit by a Canadian leader to Turkey, where the two countries upgraded their relations to a "strategic partnership."^[30] Some Canadians pulled away on their own, boycotting American products and refusing to travel across the border.^[31]

Europe became the centerpiece of the turn. Officials described a far-reaching alliance with the EU that could stop just short of membership,^[32] and in September 2026 Carney said Canada would pursue a "unique economic alliance" with the bloc.^[33] European Commission President Ursula von der Leyen said she wanted to open the door to Canada becoming the EU's first "associate member."^[7] French President Emmanuel Macron backed the idea, while Germany opposed a fast track,^[34] and after Trump called it "laughable," Carney told the European Parliament that most Canadians supported closer ties.^[7]

At home, the effort reached Canada's oil industry and its unity. In July 2026, Ottawa and Alberta announced plans for a new oil pipeline to the Pacific coast to reach Asian buyers,^[35] and in September Carney fast-tracked a proposed pipeline that could carry 1 million barrels a day.^[6] Alberta Premier Danielle Smith set a referendum on whether the province should stay in Canada or begin the legal process toward a vote on separation,^[36][37] and on October 19 Albertans voted overwhelmingly to remain, by about 76% to 24% with 1.5 million votes counted.^[8] Days later, Carney said there was "no merit" to US accusations that Canadian politicians were interfering in the US midterm elections and said he was disappointed with the US ambassador, Pete Hoekstra.^[38] Canada and the European Union unveiled a new alliance at a Montreal summit, though associate membership remained unsettled,^[39][40] and Canada signed a trade pact with the United Arab Emirates.^[41] On November 5, Carney's government unveiled a budget aimed at making Canada less dependent on the United States.^[42]