At the 2025 G20 summit in Johannesburg, Canadian Prime Minister Mark Carney delivered a pointed message about the shifting global economic order, stating that the world’s centre of gravity is moving away from the US and underscoring that “the world can go on without the US.”
For decades, Canada maintained a deeply integrated economic relationship with its southern neighbour, characterised by the longest undefended border and one of the world’s largest free trade agreements, the Canada-United States-Mexico Agreement (CUSMA).
However, escalating trade tensions during US President Donald Trump‘s administration, including tariff battles, have strained this partnership.
Where do ties stand now?
Canada is working to become more economically independent and diversify its trade because of ongoing tariffs and protectionist policies from the US.
Carney’s administration is aggressively pursuing plans to reduce Canadian reliance on the US market by expanding trade with Asia, Europe, and Africa, doubling non-US exports by 2035, and pushing ‘Buy Canadian’ initiatives, Washington Post had earlier reported.
The Canadian government’s agenda prioritises critical mineral development, clean energy investments, and strengthening domestic industries to build long-term resilience, according to the government’s ‘Critical Minerals Strategy’ document.
US-Canada ties: Cooperation in key areas persist
Despite these shifts, cooperation persists in key areas like defence and counterterrorism as despite ongoing tensions and shifts in bilateral relations, both countries maintain a strong defence partnership, particularly through agreements like NORAD.
US-Canada trade deal soon?
Trade negotiations between the US and Canada are ongoing but complex, with no finalised agreement yet.
In 2025, talks have been described as moving through an “intense phase” with both sides aiming to resolve disputes around tariffs imposed by the US on steel, aluminium, and automobiles, multiple reports claimed.
These tariffs, introduced under President Donald Trump, have significantly affected bilateral trade. At the G20 summit, Carney stated that Canada will resume trade discussions “when the US is ready”.