Mark Carney now says Canada can help 'make America great again' — a reversal from defiance as Canada’s economy shrinks

Former Bank of Canada governor Mark Carney delivered a surprising message at the Economic Club of New York in late May, declaring that a 'Canada Strong' could contribute to making America great again. This marks a reversal from his earlier stance, which warned that Canada’s deep economic ties with the U.S. created vulnerabilities and urged middle powers to collaborate. Carney’s comments arrive as North America faces critical trade decisions, with the July 1 deadline for renewing the United States-Mexico-Canada Agreement (USMCA) looming. The current USMCA framework supports $1.8 trillion in tariff-free trade, but uncertainty over its renewal has discouraged long-term investments, according to a March 2026 analysis by the Center for Strategic and International Studies (CSIS). Canada’s economy has shown signs of strain, with Statistics Canada reporting a 0.2% decline in GDP in the fourth quarter of 2025, followed by stagnation in the first quarter of 2026. Economists like Jock Finlayson of the Fraser Institute note that Canada’s efforts to diversify trade have had limited success, leaving its economy heavily reliant on U.S. markets. Trade tensions between the two nations have historically disrupted supply chains, with some goods crossing borders up to eight times before reaching consumers. Anticipation of tariffs can trigger inflation, squeezing corporate profits and forcing central banks to adjust monetary policy. The upcoming USMCA review adds to market volatility, as investors weigh potential disruptions to North American manufacturing and trade flows.