In a historic move, Canada has officially ended its 250-year relationship with the United States, marking a dramatic shift in North American diplomacy. The decision comes under the leadership of new Prime Minister Mark Carney, a former central banker who assumed office in March 2025 after winning the Liberal Party leadership. Carney took over following Justin Trudeau’s resignation, which was prompted by plummeting approval ratings.
The breakup was triggered by escalating trade disputes, particularly after former U.S. President Donald Trump reinstated a 25% tariff on auto imports. In response, Canada retaliated by excluding Tesla from its electric vehicle (EV) rebate program, signaling a hardening stance against U.S. trade policies.
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Carney emphasized that the longstanding economic partnership between the two nations, including the landmark 1965 Canada-U.S. Auto Pact, is now obsolete due to these aggressive tariff measures. This bold move underscores Canada’s determination to redefine its economic independence in an increasingly polarized global trade landscape.
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