Canadian Prime Minister Mark Carney acknowledged this week that his government has prepared contingency plans for the unlikely scenario of a U.S. invasion amid escalating trade tensions between the two countries. Speaking on Wednesday during the United Nations General Assembly, Carney described such preparations as part of prudent risk management rather than an expectation of imminent conflict.

“I think you have a responsibility in these roles to look at extreme tail risk,” Carney said in an interview, emphasizing that the possibility of military action by the United States against Canada remains highly improbable. “That’s just risk management. That’s not a base case, but it would be irresponsible not to,” he added.

Carney, 61, who previously served as governor of both the Bank of Canada and the Bank of England, made the remarks following a recent proposal by European Commission President Ursula von der Leyen to grant Canada associate membership status within the European Union. This development reportedly drew a strong reaction from then U.S. President Donald Trump, who characterized the potential move as a “hostile act.”

Relations between Canada and the United States have been strained in recent months over trade disputes, with tariffs and policy disagreements fueling tensions. While the idea of a direct military confrontation has been viewed as far-fetched by most analysts, Carney’s comments underscore a cautious approach by Canadian officials to managing worst-case scenarios amid uncertain geopolitical conditions.

No additional details were provided regarding specific defense measures or contingency plans. U.S. officials have not publicly responded to Carney’s remarks. The broader diplomatic implications of the European Commission’s proposal and its reception in Washington remain a subject of ongoing attention as trade negotiations continue.