Prime Minister Mark Carney has declared Canada’s longstanding partnership with the United States—our most vital trading partner—“over.”
Speaking amid escalating tariffs, Carney lamented the end of the “old relationship” built on economic integration and shared security. This isn’t hyperbole; it’s a bridge torched by recent missteps, leaving Canada adrift in an unforgiving global economy.
The flashpoint? A provincial ad from Ontario featuring a 1987 Ronald Reagan radio address, where he warned that tariffs “hurt every American worker” and spark “fierce trade wars.” Edited for impact, the clip—aired on TV—has infuriated President Trump, who branded it “fake” and “fraudulent,” citing the Reagan Foundation’s complaint over its selective use.
Trump’s retaliation was swift: terminating all trade negotiations on Truth Social, accusing Canada of meddling in U.S. courts ahead of a Supreme Court review on his tariff regime. What was meant as a clever jab has enraged our southern neighbours, derailing talks on steel, autos, and lumber—sectors that employ many of Canadians.
Canada enters this fray broke and leverage-less, reduced to an economic backwater after a decade of Liberal mismanagement under Trudeau and now Carney. Per capita GDP has plummeted, contracting 0.4% in Q2 2025 alone, as exports cratered 7.5% amid U.S. duties.
Nationally, living standards lag 27.5% behind top G7 peers in PPP terms. Nova Scotia exemplifies the rot: with a poverty rate of 12.5%—Canada’s highest—it’s now the poorest jurisdiction in North America by GDP per capita, outpacing even Mississippi.
A lost decade of ballooning debt, stifled investment, and carbon taxes has eroded productivity, leaving us with the worst real growth since the 1930s. Carney’s pivot? Frantic overseas jaunts to double non-U.S. exports in a decade, courting Europe and Asia. Noble, but delusional. With no diversified supply chains or capital firepower, it’ll take a miracle to offset our trade vanishing south.
Trump, ever the dealmaker, keeps his eye on the prize: wielding economic might to bend Canada toward submission, echoing his “51st state” taunts.
Hard times loom. Job losses in auto heartlands, soaring consumer prices, and fiscal collapse await if Carney’s diversification gamble flops.