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Canadian Prime Minister Mark Carney said his government has examined the possibility of US military action against Canada as an “extreme tail risk”, while emphasizing that he remains in frequent contact with President Donald Trump despite deteriorating trade relations, The New York Times reported on Wednesday.
Asked whether he took Trump’s previous suggestions that Canada could become the 51st US state seriously, Carney said governments have a responsibility to prepare for unlikely scenarios that could have severe consequences.
“I think you have a responsibility in these roles to look at extreme tail risk,” Carney said, declining to provide details about Canada’s preparations. “That’s just risk management. That’s not a base case, but it would be irresponsible not to.”
Carney says communication with Trump continues
Carney said he and Trump have spoken “frequently”, including several times since bilateral trade negotiations collapsed in August.
“From my perspective, we have a good relationship in the sense of we can pick up the phone and talk to each other about issues,” he said.
Canada suspended the negotiations on Aug. 21 after Carney said Washington had introduced last-minute terms that Ottawa considered unfair and economically damaging.
Ottawa seeks to reduce dependence on US suppliers
Carney also outlined efforts to reduce Canada’s reliance on US technology and suppliers. These include plans to diversify away from Elon Musk’s “Starlink” satellite network and a review of Canada’s planned purchase of 88 US-made F-35 fighter jets.
Canada wants to strengthen economic ties with other countries, including China, although Carney ruled out closer defence ties with Beijing. He said Ottawa would continue pursuing greater economic and strategic diversification even under a future US administration.
Despite the trade dispute, Carney said there was still scope for a mutually beneficial agreement with Washington. He cited Canadian potash, which accounts for most US imports of the key fertilizer ingredient, as a potential area for cooperation.
Trump said earlier this week that Washington was pursuing a potash deal with Belarus.
