Canadian Prime Minister makes chilling admission about possible war with the US

Canada has been bracing for the possibility of going to war with the US, Prime Minister Mark Carney revealed in a bombshell new interview.

The leader of the Liberal Party said it 'would be irresponsible not to' prepare for the worst case scenario amid the current trade war, on top of Donald Trump repeatedly raising the possibility of annexing the nation.

Carney explained that he has had to weigh up the 'extreme tail risk' that the US could launch military action, while keeping coy about what Canada's preparation looks like.

The Canadian PM has been at loggerheads with Trump over a myriad of issues throughout the last few months.

Most recently, he issued a scathing response to the commander-in-chief, 80, on social media after he signed an executive order directing the American government to rename Lake Ontario to Lake America.

Carney and Trump don't always see eye to eye (Anna Moneymaker/Getty Images)

Carney refused to subscribe to the name change and told Canadians in a post on X in August: "We know that America is changing. Their trading relationships, their foreign policies, their national monuments, their hydronyms.

"Canadians also know that naming reality means calling it Lake Ontario - then, now and always."

But there's even bigger fish to fry at the moment, as Canada is locked in a trade war with the US, sending prices skyrocketing and impacting supply chains.

The Bank of Canada explained that a host of sectors have been 'hit hard' by the tariffs that have been imposed by Trump.

"These tariffs were a sudden shift in our trading relationship and raised the cost of buying Canadian-made goods for US companies and consumers," it explains. "These adjustments can reduce demand for Canadian exports.

Trump previously said it was 'highly unlikely' that the US would use military force against Canada (Chip Somodevilla/Getty Images)

"When there is less demand for Canadian products, it can mean fewer jobs and less economic activity. Over time, this can weigh on growth.

"Businesses may invest less, and the economy’s ability to produce goods and services may stagnate."

Although businesses have been 'adapting', a host of firms have been feeling the pinch.

Amid the continuing tensions, Carney has now revealed that he has been preparing for the possibility of the US taking military action against Canada.

Carney has been considering 'extreme tail risk'

Speaking to The New York Times, the PM said: "I think you have a responsibility in these roles to look at extreme tail risk.

"That’s just risk management. That’s not a base case, but it would be irresponsible not to [prepare]."

Carney said he talks with Trump 'frequently', adding: "From my perspective, we have a good relationship in the sense of we can pick up the phone and talk to each other about issues.

"He's direct. I'm direct in terms of where positions are. It's much more efficient that way, and so you know that exists and that will continue to exist."

Carney announced his country have been preparing for the possibility of conflict (Dave Chan/AFP via Getty Images)

Trump has routinely floated the idea of making Canada the '51st state'.

Towards the end of 2024, he shared a Truth Social post claiming that this is what 'many Canadians want' too - adding: "They would save massively on taxes and military protection. I think it is a great idea. 51st State!!!"

Trump brushed off the suggestion that he would use military force to get what he wants in May last year, telling NBC: "Well, I think we’re not going to ever get to that point.

"It could happen, something could happen with Greenland. I’ll be honest, we need that for national and international security. But I think it’s highly unlikely.

"I don’t see it with Canada. I just don’t see it, I have to be honest with you."

Last week, the US president said conversation surrounding Canada becoming an associate EU member was 'laughable' and could be considered a 'hostile act'.