Trump calls Canada the 51st state

U.S. President Donald Trump has repeatedly threatened to absorb Canada, imposed sanctions on Ottawa, and harmed Canadian companies and consumers. Canada is the world's 11th-largest economy and shares the planet's longest land border with the U.S.

Economies are mutually dependent

Canadian Foreign Minister Anita Anand argues that U.S. and Canadian economies are deeply integrated. In the auto sector alone, cars travel back and forth across the border multiple times before final production.

“Our economies, which have been integrated for decades upon decades, are mutually interdependent.”

Canada takes a tough stance

Canada's strategy of standing firm against Trump's tariffs helped elect Prime Minister Mark Carney. The government acknowledges this path carries steep economic costs but believes it serves Canada's sovereign interests.

Most goods still cross tariff-free

A vast majority of goods continue to pass through the Canada-U.S. border without tariffs under the Canada-United States Free Trade Agreement. Negotiators are focusing on sectoral tariffs in steel, aluminum, lumber, and autos.

Canada diversifies trade globally

Canada is the only G-7 country with free trade agreements with every other G-7 member. Over the past year, Canada signed over 20 security, defense, and economic agreements with countries worldwide to reduce dependence on the U.S.

Indo-Pacific expansion underway

Canada signed a free trade agreement with Indonesia last year and is negotiating one with the Philippines. The country aims to conclude a comprehensive economic partnership with India and a free trade agreement with ASEAN before year's end.

Long-term resilience strategy

Canada plans to double non-U.S. trade over the next 10 years regardless of whether U.S.-Canada relations normalize. The strategy focuses on economic robustness, longevity, and sovereignty for the long term.

“We can give ourselves much more than any country can take away.”

Canada-EU relationship deepens

Canada is the only non-European member of Security Action for Europe and the only non-European member invited to the European Political Community. A Canada-EU summit is planned for Montreal at the end of October.

EU partnership focuses on five pillars

The Canada-EU relationship will deepen through critical minerals, artificial intelligence and quantum technology, trade and investment, defense partnerships, and people-to-people ties including education and the Erasmus program.

Canada's ironclad Ukraine commitment

Canada has trained over 50,000 members of the Ukrainian Armed Forces under Operation Unifier and placed approximately 4,000 sanctions against Russian oligarchs and entities. The relationship between the two countries predates Russia's February 2022 invasion.

“Our commitment to Ukraine, until it wins this war and beyond, will not change.”

Winter survival strategy for Ukraine

Canada is coordinating multilateral efforts to help Ukraine survive the winter. Generators provide backup power when missile attacks disable the energy grid, allowing families reliable heat and electricity during the coldest months.

Energy infrastructure preservation focus

Canada is having conversations with Ukraine and other countries to preserve energy infrastructure across multiple energy sources. The goal is to ensure power systems remain functional despite ongoing Russian missile attacks.

Russia poses Arctic and cyber threats

Canada faces Russian hybrid attacks, including DeepSeek operations, and Russian military infrastructure moving northward toward the Arctic Circle. Protecting and defending the Arctic is Canada's top priority as foreign minister.

Defense spending reaches 80 billion

Canada is investing 80 billion dollars in national defense to protect its homeland against Russian threats. Procurements include submarines and over-the-horizon radar to enhance military capabilities.

Fiscal strategy separates operating and capital

Prime Minister Mark Carney, a former central bank governor, divided expenditures between operating and capital spending. Canada is on track to balance operating expenditures over the next year through a comprehensive expenditure review.

Capital investments in national projects

Canada is investing in capital projects including ports, highways, and airports to enhance military capabilities and infrastructure. The government is shortening permit timelines to accelerate investment flow into national projects.

Foreign investment surges into Canada

An investment summit in Toronto last week attracted 500 billion dollars in foreign direct investment commitments across 10 national projects. Investment continues to flow into Canada despite trade tensions with the United States.