In early 2025, the President of the United States, Donald Trump, repeatedly suggested that Canada should become the "51st state" and imposed tariffs on many Canadian goods. Many Canadians reacted strongly: fans booed the US anthem at some hockey games, provincial liquor stores pulled American products from their shelves, shoppers looked for "Made in Canada" labels, and car trips by Canadians to the United States dropped sharply. The phrase "Elbows up", borrowed from hockey, became a popular slogan for standing firm. A crisis with Canada's closest ally and biggest customer suddenly made questions of national identity feel urgent again. This lesson traces the Canada–US relationship since 1982 and asks how it has shaped what Canadians think makes them distinct.
A close but unequal relationship
| Year(s) | Development | What it showed about the relationship |
|---|---|---|
| 1985 | "Shamrock Summit" between Brian Mulroney and Ronald Reagan in Quebec City | A warmer personal relationship that led to free trade talks |
| 1989, 1994, 2020 | FTA, NAFTA and CUSMA (see the economy lesson) | Deep economic integration; Canada sends most of its exports to the US |
| 1991 | Canada–US Air Quality Agreement to cut the emissions that cause acid rain | Successful cooperation on a shared environmental problem |
| 1982 onward | Repeated softwood lumber disputes, with US duties on Canadian lumber | Even with free trade, powerful US industries can win protection |
| 2001 | After 9/11, Canada welcomed diverted flights and joined the mission in Afghanistan; border security tightened | Solidarity, followed by a "thicker" border; from 2009 a passport or similar secure document was needed to cross by land |
| 2003 | Canada declined to join the invasion of Iraq | Canada could say no to its closest ally |
| 2002–2017 | Omar Khadr, a Canadian captured by US forces in Afghanistan at age 15, was held at Guantánamo Bay; the Supreme Court of Canada found that Canadian officials had violated his Charter rights, and Ottawa settled with him in 2017 | Canadians were divided over the case, which raised questions about citizenship, child soldiers and cooperation with US policy |
| 2020–2021 | The land border closed to non-essential travel during the COVID-19 pandemic | How much daily life depends on an open border |
The trade conflict of 2025–2026
In February 2025 the US government announced tariffs of 25 per cent on most Canadian goods (10 per cent on energy), citing concerns about drugs and migrants crossing the border; Canada argued that only a very small share of either came from Canada. The tariffs took effect on March 4, 2025, and Canada answered with counter-tariffs on US goods. Goods that met CUSMA's rules were later exempted from the broad tariffs, but separate US tariffs hit steel and aluminum (raised to 50 per cent in June 2025), autos and lumber. Canada removed many of its counter-tariffs in September 2025 while keeping others. On February 20, 2026, the US Supreme Court ruled that an emergency powers law did not allow the president to impose tariffs, striking those tariffs down, but tariffs imposed under other laws remained and the US turned to other laws for new ones. At CUSMA's first joint review on July 1, 2026, the United States did not agree to extend the agreement, so it stays in force but faces yearly reviews. In summer 2026 the dispute escalated again: new US tariffs of 50 per cent on about 27.6 billion dollars' worth of Canadian goods took effect on August 22, and Canada imposed matching counter-tariffs on September 8. As of fall 2026, the dispute had not been resolved.
- Consumers and provinces boycotted some US products and travel
- Governments supported affected workers and businesses and promoted buying Canadian
- Parliament passed a 2025 law to reduce trade barriers between provinces
- Ottawa sought new trade partners in Europe and Asia to reduce dependence on the US
- Some argued for matching US tariffs firmly to show strength
- Others, including many businesses and some premiers, stressed negotiating to avoid damaging Canadian jobs and prices
- Energy-producing provinces opposed restricting oil and gas exports as a pressure tactic
- Many communities on both sides of the border, including First Nations whose territories cross it, worried about lasting damage to cross-border ties
The crisis also reshaped federal politics. Justin Trudeau announced in January 2025 that he would resign; Mark Carney, a former governor of the Bank of Canada and of the Bank of England, became Liberal leader and prime minister in March. In the federal election of April 28, 2025, in which relations with the United States were a central issue, the Liberals won 169 of 343 seats and formed a minority government, and Pierre Poilievre's Conservatives won 144 seats with about 41 per cent of the vote, the largest share for a conservative party since 1988. Historians will judge the long-term effects, but the episode showed how much Canada's economy and sense of itself remain tied to its neighbour.
Identity, multiculturalism and culture
Canadians have often defined themselves partly by contrast with the United States: public health care, stricter gun laws, peacekeeping and official multiculturalism. The Canadian Multiculturalism Act (1988) made multiculturalism law. In the 2021 census, about 23 per cent of people in Canada were immigrants, the highest share in over 150 years, and people reported more than 450 ethnic or cultural origins; about 1.8 million people identified as First Nations, Métis or Inuit, a fast-growing and increasingly urban population. Debates continue about immigration levels, housing and how newcomers and Indigenous peoples see their place in the national story.
| Field | Examples since 1982 | Why it matters for identity |
|---|---|---|
| Indigenous arts | Cree playwright Tomson Highway (The Rez Sisters, 1986); Abenaki filmmaker Alanis Obomsawin; Inuk director Zacharias Kunuk, whose Atanarjuat: The Fast Runner won the Caméra d'or at Cannes in 2001 | First Nations, Métis and Inuit artists telling their own stories in their own languages |
| Literature | Margaret Atwood (The Handmaid's Tale, 1985); Michael Ondaatje (The English Patient, Booker Prize 1992); Lawrence Hill; Esi Edugyan | Canadian writers gained world audiences while exploring Canadian and global experiences |
| Music | Céline Dion, Shania Twain, the Tragically Hip, Arcade Fire, Drake | Global success for Canadian artists, helped at home by Canadian content rules on radio |
| Film and television | "Hollywood North" productions in Vancouver and Toronto; Schitt's Creek swept the comedy categories at the 2020 Emmys | Canada as both a production centre for US studios and a source of its own stories |
| Sport | Calgary 1988 and Vancouver 2010 Olympics; Donovan Bailey's 1996 gold; Sidney Crosby's overtime goal for hockey gold in 2010 | Shared national moments that build pride |