SCOTT DETROW, HOST:
Canadian Prime Minister Mark Carney says the once strong and reliable relationship between Canada and the U.S. has changed. In a 10-minute video address to the nation on Sunday, Carney said U.S. tariffs are hurting Canada's economy, and he says Canada needs to move away from its overreliance on the U.S. Carney outlined plans to bring in fresh investment and expand trade beyond America. NPR's international affairs correspondent Jackie Northam has been watching. Hey, Jackie.
JACKIE NORTHAM, BYLINE: Hi, Scott.
DETROW: So Carney's indicating he wants a new direction in the U.S.-Canada relationship. What else did he say during this address?
NORTHAM: Well, you know, this was something akin to a fireside chat. Carney told Canadians that the economy has been hit hard by U.S. trade policies, especially tariffs, and that he wasn't going to sugarcoat or downplay the real threat this poses for the country. You know, for decades, Canada's close economic integration with the U.S. was an advantage, but Carney said that's not the case anymore. Have a listen.
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PRIME MINISTER MARK CARNEY: The U.S. has fundamentally changed its approach to trade, raising its tariffs to levels last seen during the Great Depression. Many of our former strengths, based on our close ties to America, have become our weaknesses, weaknesses that we must correct.
NORTHAM: And, Scott, Carney never says President Trump's name, but he acknowledged there were people saying just wait it out, in the hope that the U.S. will return to normal and that the good old days will come back. But Carney said, quote, "hope isn't a plan, and nostalgia is not a strategy." He said the U.S. has changed and that Canada needs to take control of its own future.
DETROW: Jackie, can you remind us of all the different ways the U.S.-Canada relationship has gone off the rails in recent years?
NORTHAM: Yeah. Well, you know, there are things such as Trump saying he wants to annex Canada, make it the 51st state. And, you know, Canadians responded overwhelmingly by boycotting American-made products and travel to the U.S., and it's hurting businesses here in the U.S. But it's the economic policies, Scott, that have really created a breach in the relationship. Trump has placed punishing tariffs on Canada, which Carney said is seriously hurting workers in the auto and steel and lumber industries there. And businesses are holding back investments because of the uncertainty over all of this.
You know, Carney's address comes at an interesting time. You know, first, he recently secured a parliamentary majority. He is very popular. Also, a new round of negotiations are due to begin in July for the free trade agreement with the U.S. and Mexico. And signs, so far, is there going to be contentious.
DETROW: So Carney setting this goal saying Canada needs to take control of its future. How exactly is it going to do that?
NORTHAM: Well, there's a plan called Canada Strong, and it's ambitious. Carney says he wants to create new trade and energy relations, and he says he wants to catalyze a trillion dollars in investments.
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CARNEY: We've signed 20 new deals on four continents in less than a year because Canada has what the world wants, from energy to education. We have the values to which most of the world aspires, and we're a reliable partner in a world that is anything but.
NORTHAM: And Carney's also doing things domestically, such as cutting taxes and building up the country's housing stock and its military. And he warned Canadians, you know, this will take time and that there are going to be setbacks along the way.
DETROW: I'm curious. Has there been a response from the White House or directly from President Trump about all of this?
NORTHAM: Well, a White House spokesman told NPR no country should expect one-sided access to America's economy and defense shield. No word yet from President Trump. You know, Carney and Trump do have a fairly good relationship. Although, in January, Trump did make the comment, Canada lives because of the United States.
DETROW: That is NPR's Jackie Northam. Thanks so much.
NORTHAM: Thank you. Transcript provided by NPR, Copyright NPR.
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