Trade Tensions Spark Debate Between U.S. and Canada

Prime Minister Mark Carney denied retracting statements that irked President Trump about U.S.-Canada relations. Carney advocates for trade diversification away from the U.S., highlighting Washington's changing dynamics. The U.S. threatened tariffs in response to Carney's remarks, but Canada remains firm, building broader partnerships under USMCA terms.

In a sign of persistent tensions between the U.S. and Canada, Prime Minister Mark Carney recently affirmed that he had not rescinded comments which had displeased President Donald Trump. Speaking at Davos, Carney highlighted changing U.S. trade policies and advocated for diversifying Canadian trade away from heavy dependence on the American market.

Carney's remarks in Switzerland, particularly those critiquing U.S. tariffs on Canadian imports, drew a sharp response from Trump, who threatened a 100% tariff on Canadian goods should Ottawa finalize a deal with China. Despite Trump's reaction, Carney stood by his statements, asserting the need for new partnerships.

Addressing the House of Commons, Carney confirmed that a review of the USMCA trade pact would commence soon. While Trump dismissed the USMCA as irrelevant, Carney reiterated Canada's commitment to proactively engage and adapt to the evolving trade landscape.

(With inputs from agencies.)