Link to article: https://apnews.com/article/canada-carney-trump-budget-exports-c78a41c00167bc1d8177d5d74e34d09f
Canadian Prime Minister Mark Carney says that Canada can no longer assume its deep economic integration with the U.S. will persist. He announced a goal of doubling Canada’s exports to non-U.S. markets over the next decade, citing mounting U.S. tariffs and trade uncertainty as key risks. With more than 75% of Canadian exports currently going to the U.S., he described that reliance as a vulnerability for industries such as autos, steel, lumber and aluminum. Carney said that the era of “ever-closer economic ties” to the U.S. is over, pointing out that U.S. tariff levels are now “last seen during the Great Depression.” The 2025 federal budget, which will be released in the near term, will be built around this shift, seeking to invest in diversification, new trade partnerships, infrastructure and Canada’s role as a major energy and critical-minerals supplier. He emphasized that transforming the economy will take time and sacrifice, “we won’t transform our economy easily or in a few months.”
I understand why the US is trying to become less dependent on other nations for goods, as we saw the downsides during the COVID-19 pandemic, and trying to boost our economy and create jobs with more American-made goods. But I feel going after Canada may not be the best choice considering they are a very close ally, as we have similar democratic views and cultures. Now, with this article, we see that Canada isn’t going to just sit back as we put tariffs on them and try to bring them down by other means. I think we should work to become less dependent on Canada, but in a more democratic and peaceful way, as it isn’t a great idea to have an enemy on our borders.
The US government could either remain reliant with harsher tariffs on Canada, but they could also start to cooperate more. I could see states like the UK start to trade more with Canada, as 75% of Canadian goods are given to the US, and the UK, with similar identity to the US, would probably like those goods. Additionally, the UK and Canada have close historical ties, so this could further that relationship, putting the UK ahead of the US in terms of diplomatic friendships.
This fits with constructivist theory because the shifts in trade and diplomacy between the US and Canada are not just driven by national interests but also by shared identities. Realism theory would explain the US’s move more toward our national interests solely over established relationships with other states, but the potential move from Canada to the UK reflects their common Commonwealth background and similar political values and how they view the UK more as an ally due to them both speaking English and other similar identities.