Carney Says Canada's Diversification Beyond the US Is Costly but Necessary

11:48 AM EDT, 09/08/2026 (MT Newswires) -- Prime Minister Mark Carney said reducing Canada's reliance on the United States will come at a cost but is necessary to strengthen the economy and diversify its trade relationships. In a national video address posted on YouTube, Carney said Canada will pursue new trade deals around the world in response to the US trade war, arguing that the cost of taking action is far lower than the cost of inaction. "We have everything we need to pivot and prosper," Carney said in the video. "That pivot will come at a cost. There's always a cost to action." Carney said the government's goal is to build a more resilient Canada, with measures and government programs that are "about ensuring that no country can hold us hostage". Carney defended retaliatory tariffs that came into effect Tuesday as necessary to protect Canadian workers, businesses and communities from what he called unfair US trade measures. The Canadian prime minister reiterated that trade talks with the US ended last month after Washington introduced last-minute demands limiting Canada's capacity to strike trade deals with other countries, as well as its ability to protect the French language, one of the country's two official languages. US officials have denied such claims. After the end of talks, the US introduced on Aug. 22 tariffs on Canadian goods worth CA$28 billion. Carney highlighted plans to build local infrastructure, protect Canadian jobs and diversify trade abroad. The Prime Minister said that Canada currently has tariff-free access to 1.5-billion consumers through existing trade agreements and aims to double that figure over the next six months. Carney said the impact of the government's measures, including retaliatory US tariffs, "won't be easy and I won't pretend otherwise".