Stephen Harper says Canada had 'no choice' but to walk away from U.S. trade talks

Former prime minister Stephen Harper said in his remarks at the Canada Investment Summit that the state of Canada-U.S. relations is 'very sad, just as equally necessary.' (Nathan Denette/The Canadian Press)Social SharingFormer prime minister Stephen Harper, who led Canada's Conservative Party for over a decade, backed the federal government's decision to walk away from trade talks with the United States "to see a trade war commence in earnest." 

Harper delivered the closing keynote to hundreds of the world's wealthiest investors gathered in downtown Toronto for the first-of-its-kind Canada Investment Summit. 

"This had to be a very difficult decision, but I do believe that our government had no choice but to take this path," Harper said.

Harper, who has described himself as "probably the most pro-American prime minister in Canadian history," acknowledged his own long-held admiration for our southern neighbours.

But Canada needs to remain committed to retaining its economic diversity, Harper argued, not allowing U.S. President Donald Trump's administration to "hollow out" the country's industrial capacity.

"It is clear that the current U.S. administration views our level of economic integration as incompatible with our separate sovereignty," Harper said. "Thus to maintain that sovereignty, we must pursue diminished reliance on the United States."

"I do find this all very sad, just as equally necessary."

FULL SPEECH | Harper backs Carney's decision to walk away from U.S. trade talks

Within Canada's departure from its previous relationship with the U.S., Harper said the country is discovering an opportunity to rediscover its true potential.

"Leadership is defined by taking accountability for what you can control," he said, and Canada cannot only blame external factors for the headwinds it faces.

Harper argued Canada needs to become "more internally competitive, more externally connected and more truly sovereign than it has been."

Harper's remarks formally wrapped the multi-day investment summit which was spearheaded by Prime Minister Mark Carney.

The summit brought together hundreds of business leaders, foreign investors and current and former politicians in the hopes of attracting $1 trillion worth of investments over the next five years to fund big projects across Canada.

Stephen Harper says Canada must urgently reduce its dependence on the U.S.

Harper attended the summit as the chair of the Alberta Investment Management Corporation (AIMCo), a position he has held since 2024.

The former prime minister told the room of investors that Canada's resource development is its "competitive advantage," and said becoming an energy superpower is "critical to our prosperity and indeed to our survival as a country." 

Harper faulted the Liberal government that followed his election loss in 2015, saying until that point, "Canada was poised to become that energy superpower."

He said Canada missed that potential "because of deliberate policy choices that followed over the next decade."

"But there is no point bemoaning what is passed," Harper continued. "Especially because the opportunity of becoming that global energy superpower is fortuitously offering itself to us once again."

Harper congratulated Carney's Liberal government on its efforts to fast-track major project approvals, in particular in Alberta's oilsands. He also commended Ottawa for holding the investment summit.

"It is such a great innovation that I wish I had thought of it," Harper said to a chuckling audience.

Amid the congratulations, Harper was clear: "More does need to be done."

He called for a removal of burdens and restrictions in Canada "that do not exist elsewhere," and for the government to reform its regulatory reviews and permitting processes to provide investors with a degree of certainty, "as we had set up a decade ago."

Harper warned that if the government doesn't clear those hurdles, the U.S. will continue to be Canada's sole customer and "they will not lack the urgency that we have lacked here in Canada."

"That is why I have to say that I am very encouraged by the detailed comments the prime minister made today on doing just some of these things, and I welcome them," Harper said.

"I believe that Canada's new government is committed to further reforms in these areas and committed to their urgency."

Harper's closing keynote endorsing the summit and aspects of the current government's direction is especially notable given the former Conservative prime minister has not always appeared so onside with Carney.

Just last year, Harper accused Carney of inflating the role he played as Bank of Canada governor during the 2008 financial crisis, a crisis managed by Harper's government. 

"I have listened, with increasing disbelief, to Mark Carney's attempts to take credit for things he had little or nothing to do with back then," Harper wrote in a fundraising letter at the time.

Carney was Bank of Canada governor between 2008 and 2013, serving under Finance Minister Jim Flaherty. Carney's campaign website stated that he "guided Canada through one of the most turbulent economic periods in modern history, protecting jobs and helping ensure that Canada came out stronger."

During the 2025 election, Harper endorsed Conservative Leader Pierre Poilievre "without hesitation, without equivocation, without a shadow of a doubt," for prime minister over Carney. 

But over the past year, Harper returned to the limelight, delivering a number of speeches calling for Canadian unity and to reduce the country's dependence on an American neighbour that has become "hostile."

In February, Harper said Canada should consider tariffing U.S. goods because a one-sided tariff arrangement could decimate the manufacturing sector. Carney's government mounted counter measures including tariffs against the U.S. after trade talks fell through in August.

David Cummings is a reporter for CBC News.