Canadian Prime Minister Mark Carney has outlined a strategic plan to reduce his country’s dependence on the United States for critical technologies and defense equipment, aiming to protect Canada from potential economic and security vulnerabilities amid strained bilateral relations. In a detailed interview conducted in New York City, Carney emphasized the importance of diversifying Canada’s partnerships and supply chains following heightened tensions with the U.S. government.

Carney, a former central banker with experience in both Britain and Canada, described preparations over the past year for what he termed an “extreme tail risk” scenario involving possible U.S. military action against Canada, though he refrained from elaborating on specific contingencies. He noted ongoing direct communication with former U.S. President Donald Trump, calling their exchanges “frequent” despite the recent breakdown in trade negotiations last month.

The Canadian leader highlighted efforts to decrease reliance on American technologies, including satellite systems and fighter jets. Specifically, he mentioned plans to diversify away from Elon Musk’s Starlink satellite network, part of SpaceX, citing concerns about its resilience and the company’s policies during the Ukraine conflict. At the same time, Canada is reassessing its planned purchase of 88 F-35 fighter jets from Lockheed Martin, considering alternatives such as the Swedish Saab Gripen, with a focus on acquiring aircraft optimized for Arctic operations.

Carney also discussed expanding economic ties with China, while stopping short of deepening defense cooperation. He emphasized that lessons from “predatory” U.S. trade policies underscored the necessity of reducing Canadian dependence on its southern neighbor. This shift comes amid a backdrop of escalating tariffs and rhetoric since the collapse of the latest trade agreement talks. Despite harsh exchanges, Carney remains optimistic about reviving negotiations and stressed the mutual benefits of a renewed trade deal.

One potential area for progress is Canada’s potash exports, a key component in fertilizer production. Carney argued that securing Canadian potash sources for the United States would contribute to regional agricultural and energy independence, especially as the U.S. contemplates replacing Canadian supplies with imports from Belarus, a country under sanctions due to its support of Russia’s war in Ukraine.

Domestically, Carney declined to limit energy exports to the U.S., where Canada supplies about 60 percent of oil imports, citing the importance of maintaining reliability as a supplier. He described energy and food provision as areas where cooperation must remain steady, despite the political tensions.

Carney also touched on broader financial issues, reiterating his belief that the global economy’s reliance on the U.S. dollar is unsustainable in the long term. He predicted a gradual directional shift toward a multipolar currency system that would allow greater flexibility, though he acknowledged that significant change depends on reforms in China’s financial markets.

Overall, Carney’s approach reflects a careful balancing act: maintaining crucial economic and defense ties with the United States while proactively seeking diversification to reduce Canadian vulnerabilities amid an unpredictable and, at times, adversarial partnership.