Toronto, Canada - Canadian Prime Minister Mark Carney said in a speech on Saturday that Canada "remains open" to building "deeper integration" with Mexico and the US on trade.
"As the US changes dramatically its policies – and that's the right of the United States – as it changes those policies, many of our former strengths have become our vulnerabilities," Carney said during an address to the Global Progress Action Summit in Toronto.
"Now we still, to be clear, we still have the best trade deal with the United States, over 85% of our goods move tariff free across the border," he continued. "But with American tariffs… those are creating deep challenges."
He went on to explain that punishing tariffs on Canada's aluminum, steel, and automobile sectors have damaged the integration of Canada-US trade, despite them providing a "benefit" to the US.
Since entering office last year, Carney has moved to reduce Canada's reliance on the US and diversify its trade and defense policy. To do so, he has signed deals with not only European allies, but also with Australia and various other partners in Asia.
Canada is in the midst of negotiations over the renewal of the US-Mexico-Canada Agreement (USMCA), which has guaranteed free trade across North America since it began under the first Trump administration.
"Canada remains open to deeper integration, including options for 'Fortress North America' in selected sectors," Carney continued. "To be clear, those offers are on the table. But if that route is not ultimately possible, we will invest heavily in new markets and products."
President Donald Trump has insisted that the tripartite agreement is "irrelevant" to the US, however, further complicating USMCA negotiations for both Canada and Mexico.