Carney says Canada responding to changed US ‘imperative’

Canadian Prime Minister Mark Carney said Monday that Ottawa is shifting its focus as the foundations of the international order begin to erode.

“The US has changed. That’s their right, and we are responding; that is our imperative,” Carney told reporters, acknowledging that historic ties with Washington have shifted from a strength to a vulnerability.

He emphasized that Ottawa is now moving with “speed and ambition” to build domestic resilience while expanding its global reach.

Carney said Canada has secured more than 20 economic and security partnerships in less than a year by re-engaging with “global giants” such as India, China, and Brazil, and “deepening” relations with the EU, Nordic countries, and Australia.

“As a result, we’re attracting the strongest investment in the G7, and we’re on track to double our non-US exports within a decade,” he said, noting the partnerships amount to $300 billion in new orders for Canadian resources, goods, and expertise.

US President Donald Trump had previously threatened to impose a 100% tariff on Canadian products if Ottawa signs a trade agreement with China.

Relations between Ottawa and Washington have deteriorated sharply since Trump took office, with US tariffs on Canadian goods and Trump’s repeated suggestions that Canada should become the 51st US state straining ties to a breaking point.

Additionally, Carney announced the “Canada Strong Fund,” the country’s first national sovereign wealth fund.

“The new Canada Strong Fund will give all Canadians a direct stake in building Canada strong,” he said.

The prime minister described the sovereign wealth fund as a national savings and investment vehicle designed to “grow wealth for future generations.”

“We will begin with an initial endowment of 25 billion Canadian dollars ($18.3 billion),” Carney said, adding that the fund will expand over time through reinvestment and asset recycling.

Unlike previous government models that offered loans, the fund will take equity stakes by investing alongside the private sector on a commercial basis. Carney said the fund will operate as an independent Crown corporation – a state-owned enterprise that functions as a commercial entity while remaining state-owned – with professional management and full disclosure, distinguishing it from the Canada Infrastructure Bank.

“This will be the people’s fund,” Carney said, noting that everyday citizens will be able to invest in it directly. He added that the investment would be protected similarly to a government bond, with the potential for higher returns.

In a statement, the Prime Minister’s Office said Canada is focused on building “a stronger, more resilient, and more independent economy” as the world becomes increasingly divided and uncertain.

The new strategy aims to unlock Canada’s vast resource potential through new ports, mines, trade and energy corridors, while securing domestic supply chains and expanding access to new markets at home and abroad, it said.

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