Prime Minister Mark Carney in Quebec on Aug 24, 2026. [livestream]
Monday August 24, 2026 | Lévis, Québec
by Mary P Brooke | Island Social Trends
Today Prime Minister Mark Carney made his first regular regional and industry-related government funding announcement since the bombshell rejection of the trade deal that was under negotiation with the United States.
That was a shipbuilding investment announcement in Levis, Quebec.
But he also provided insights as to the changing evolving course of Canada in economic trade relations — not just with the USA but more broadly.
Canada setting a new course:
Notably, Carney’s revised general message of introduction about government investments was usually about how the world is a more divided, dangerous place. Now it is this:
“In a rapidly changing world, Canada is setting a new course. We are building our strength at home, diversifying our trading relationships abroad, and investing in the infrastructure that will secure our future. From the ports and corridors that move Canadian goods to market, to the ships that keep our trade routes open, we are laying the foundations of a stronger, more self-reliant country,” said Carney in his news release today.
Prime Minister Mark Carney announced a shipbuilding contract for six new icebreakers, in Quebec on Aug 24, 2026, along with Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Québec Lieutenant and Quebec Premier Christine Fréchette. [livestream]
“Established trading relationships are being tested, and Canada is not standing still. We are moving fast, seizing new opportunities, and reducing our dependence on any single partner,” says Canada’s prime minister in newly describing this country’s approach to trade diversification.
Europe is written on the wall:
An active trade diversification program has been underway by Carney since he first took office in April 2025. Much of that has been focussed on Europe.
Today he said in Quebec: “This fall we will begin intense discussions with the European Union, the world’s second-largest economy, to build a much strong and deeper economic and security partnership.”
Coastline is key:
Canada is a trading nation with the world’s longest coastline.
“Today, we are strengthening our capacity to build ships at home, assert our presence in the Arctic, keep our waterways open, and move Canadian resources to new markets around the world,” said Carney.
Carney on Trump:
Will Canada’s walking away from the trade negotiation table on Friday August 22 lead to an “uncontrollable escalation” (as asked by a reporter in Quebec today)?
Carney said the US response (to say that Canada was at fault) was not a surprise.
The prime minister says that workers in states that build vehicles in the US that those workers rely on Canadian demand.
“This is the most successful automotive partnership in history. It’s existed for 60 years,” said Carney, in the context of how the US proposed deal would have slowly dismantled the Ontario-based vehicle manufacturing industry.
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Can there be a deal?
Canada was able to confirm “through the terms they were offering” that the US direction with negotiations would gradually have the impact of dismantling the auto industry and further impacting Canada’s economy. “It’s very revealing that this is where they’d go.”
“There is a mutually beneficial deal possible here, but it has to be one that respects Canada’s sovereignty,” said Carney, adding that a deal should not tear apart the auto manufacturing sector for short-term gain. He said “that’s the offer” that the US effectively proposed.
“When the Americans go to the negotiating table first with the right attitude toward our industries and a true partnership, of course we’ll come to the negotiating table,” said Carney in response to a question from a Globe and Mail reporter today.
“There is an existing arrangement between our countries and Mexico that works. It can be improved. There’s ways to improve it and we will work to improve it in ways that are to the benefit of Canadians but also to the benefit of Americans and the people in Mexico,” said Carney.
President of Mexico Claudia Sheinbaum met with Canadian Prime Minister Mark Carney during the G7 Leaders’ Summit in Alberta, June 17, 2025. [livestream]
“But an attitude at the negotiating table that Canada is a subsidiary of the United States, that Canadian industry is going to be disadvantaged relative to American industry, that we’re going to set up terms so that over time Canadian industry is going to face constant headwinds — that’s not something we’re going to accept,” said Prime Minister Carney today.
And he added: “And that’s before you get to constraints on our ability to do what the rest of the world wants which is to sign trade deals with Canada. And that’s before the very fundamental issues on culture.”
Producing what we need, now and forward:
Canada’s prime minister went more broadly to encourage other countries to “take the lesson of what we see today” about the US, and that the solution includes investing in technology and putting workers and families first, such as with the icebreaker announcement today.
“There is a strategic advantage in producing what we need,” said Carney today. The steel for the ships is Canadian. That’s a core advantage, said Carney, pointing out that what’s happened over the last week with the US will affect the shipbuilding program that was announced today.
Building these ships will be a reminder to the United States of the “many things the United States needs from Canada”, pointing out that the USA has only one icebreaker and Canada has 20. The new ships will be “best in class”. Engineering, production and supply chain management were highlighted by the prime minister, as key aspects that will set up the Davie shipbuilding manufacturer for more contracts internationally.
“This is the launch pad. As important as today’s contract is, it’s what’s to come that is more important,” said Carney, who said that Canada will be part of a “sensible world after the fever breaks”.
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