What’s Behind Canada’s Tougher Stance on Trump

Canada’s Prime Minister Mark Carney is signaling a clear shift in how Ottawa deals with Donald Trump, moving away from months of cautious cooperation toward a more confrontational strategy.

After nearly a year of trying to ease tensions through concessions, including stronger border enforcement, increased military spending, and dropping a digital tax affecting U.S. tech firms, Carney has seen little movement from Washington on tariffs or trade pressure.

With negotiations looming over the USMCA, the trade deal that underpins much of Canada’s economy, Carney appears determined to enter talks with leverage rather than goodwill.

His government has recently resolved a trade dispute with China and used international platforms to criticize economic coercion, a message widely seen as directed at U.S. trade tactics.

At the same time, Canada is working to reduce its reliance on the United States by strengthening ties with Europe and Persian Gulf countries, including securing investment pledges in clean energy, artificial intelligence, and defense.

The shift has drawn sharp reactions from Trump, who has threatened sweeping tariffs on Canadian imports and criticized Ottawa’s outreach abroad.

For the U.S., the standoff matters because Canada is America’s largest trading partner — and any escalation could ripple through supply chains, prices, and cross-border industries.