Canadian PM Carney says he studied risk of US military invasion

Canada and the United States are engaged in escalating tariff disputes since August 2026, with the U.S. imposing 50% tariffs on hundreds of Canadian products and Canada responding with 15-50% tariffs on approximately 27.6 billion Canadian dollars of American goods. The public acknowledgment of military contingency planning signals deepening uncertainty in bilateral relations and may affect defense spending, supply chain decisions, and trade policy in North America. Carney's stated pivot toward diversifying away from U.S. economic dependence—including potential defense system reviews and new trade talks with India—indicates structural shifts in Canadian strategic positioning.