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Mark Carney says Canada cannot escape fallout from Trump’s tariffs, pledges domestic reforms to cushion economic blow
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As North American markets continue to reel from a wave of new U.S. tariffs, Canada’s Prime Minister Mark Carney is warning that the economic turbulence south of the border may soon spread north.
Speaking at a campaign event ahead of upcoming legislative elections, Carney said his country has slim chances of avoiding a recession if the United States is hit by one.
“Very Difficult for Us to Avoid This”
Carney, a former governor of both the Bank of Canada and the Bank of England, cited the “significant increase” in recession risk in the U.S. as a clear threat to Canadian stability. “It will be very difficult for us to avoid this,” he said, pointing to Canada’s close economic ties with its southern neighbor.
The warning comes on the heels of a dramatic selloff in global markets following President Donald Trump’s announcement of sweeping new tariffs. While Canada has been spared from the most recent round, it continues to face long-standing levies on key sectors like steel, aluminum, and autos.
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In remarks published by Digi24, Carney acknowledged the limitations of Canada’s influence: “We can’t control the United States, we can’t control President Trump’s decisions, but we can control what we do here in this country.”
Policy Response Ahead of April Vote
Carney emphasized a proactive domestic agenda in response to the growing economic uncertainty. Among his priorities: removing interprovincial trade barriers and making it easier for workers to move across provincial lines.
He also called for accelerating infrastructure and business investment within Canada to help cushion the impact of external shocks. “These tariffs are fundamentally harmful to the American economy and also to the global economy,” he added, referring to the ripple effects seen across international markets.
Carney, who took over from Justin Trudeau last month, is leading the Liberal Party into snap parliamentary elections scheduled for April 28.
Early polls had shown the Liberals trailing, but Trump’s aggressive trade policy has reportedly helped shift momentum back in their favor, as their Conservative opponents are seen as more aligned with the U.S. president.
