Canada enters 2026 at what Prime Minister Mark Carney has rightly called a “hinge moment.” Canada’s long-standing relationship with the US, based on ever-increasing economic integration and a rock-solid security partnership, is history.
Ongoing trade uncertainty will weigh on the Canadian economy, and the US administration will wield unilateral military and economic power in the Western Hemisphere. Canada’s efforts to diversify its trade and strategic relationships will face powerful headwinds.