Canadian PM Considered Possibility of US Military Action

Canadian Prime Minister Mark Carney has considered the possibility of US military action against Canada, describing it as an extreme tail risk scenario that his administration has prepared for.

Carney disclosed this in an interview with The New York Times, stating that while it is not a base case, it would be irresponsible not to prepare. Tensions between Canada and the US have escalated under President Donald Trump, who has referred to Canada as the "51st state" and initiated a trade war with tit-for-tat tariffs.

Carney stated he speaks with Trump frequently, describing their relationship as direct and efficient. He also noted that Canada has boosted defense spending since he took office, citing its long coastline and proximity to the Arctic. The US military outnumbers Canada's in active-duty and reserve troops and possesses more military submarines. Carney's government has also worked to diversify Canada's supply chains, including for technology, to reduce dependence on the United States.

Despite the consideration of extreme scenarios, Carney believes there is a path to resume trade negotiations with the US, which he stated would be beneficial for both countries.