Carney Warns US Tariffs Have Hit Depression‑Era Levels, Pushes Canada to Double Clean Energy and Review NAFTA

Canada’s Prime Minister, Mark Carney, asserts that the United States has fundamentally altered its trade approach, shifting a core Canadian economic strength into a vulnerability. Carney states that reliance on a single foreign partner no longer serves Canada’s national interests. This re-evaluation follows increased global division and new US trade policies.

Carney declared that US tariffs, which are taxes on imported goods, have escalated to "levels last seen during the Great Depression." He noted this development impacts industries like auto and steel. Businesses, he explained, are delaying investments due to the economic uncertainty created by these tariffs.

In response, Carney outlined a plan to double Canada's clean energy capacity. This initiative forms part of a broader strategy to attract new investments and reduce internal trade barriers. He emphasizes that strengthening Canada’s internal economy and diversifying its global trade relationships are critical for national security and prosperity.

A significant upcoming event is the review of the USMCA (United States-Mexico-Canada Agreement), formerly known as NAFTA. This trade agreement between Canada, the U.S., and Mexico is scheduled for a comprehensive review in July. The timing of this review, set against the backdrop of heightened US tariffs and calls for Canadian diversification, lends increased scrutiny to its outcome.

Carney's statements underscore a strategic pivot for Canada, moving away from past economic assumptions. His administration aims to build resilience through domestic energy growth and broader trade relationships. The July USMCA review will offer a critical juncture, testing the future direction of North American trade relations amid these stated shifts.