Canadian Prime Minister Mark Carney has declared his nation will only engage in trade and security discussions with the United States “on our terms,” emphasizing Canada’s expectation of respect from its southern neighbor. The comments came in a BBC interview as election results confirmed Carney’s Liberal Party victory, with the White House simultaneously reiterating President Donald Trump’s controversial suggestion of making Canada the “51st state.”

While both leaders have agreed to meet soon, Carney dismissed any possibility of Canada losing its sovereignty, calling the idea “never, ever going to happen.” He stressed the importance of maintaining strong, independent partnerships with the US, EU, and UK, despite recent tensions sparked by Trump’s tariffs and remarks referring to former PM Justin Trudeau as “governor.”

The economic stakes are high: Canada sends 75% of its exports to the US, including critical energy supplies, while facing a $45 billion US trade deficit. Carney, a former central banker who steered Canada through the 2008 crisis, warned that new US tariffs threaten decades of integrated North American trade, particularly in manufacturing sectors like automotive parts.

Looking ahead, Carney highlighted June’s G7 summit—hosted by Canada—as a pivotal moment for global trade relations. The meeting will test alliances among advanced economies as Trump’s temporary tariff pauses near expiration. Meanwhile, Canada continues pursuing diversified trade options, including a potential UK agreement, while preparing for what Carney calls a “very different” future partnership with the US.