Carney’s cabinet huddles in Banff amid trade war, Alberta separatism push

BANFF – As U.S. President Donald Trump’s trade war intensifies and Alberta barrels toward a separation referendum on Oct. 19, Prime Minister Mark Carney’s cabinet gathered for two days of closed-door meetings set against a crisp alpine backdrop in the resort town of Banff.

Carney arrived on Thursday to face questions on how he will respond to the latest barrage of trade hostility from the White House, and what Ottawa’s role should be in next month’s Alberta referendum.

On Alberta, Carney said he is “heartened to see the level of support” that’s appeared in public opinion polling against separation, but said the federal government won’t pour money into helping fund the remain campaign.

“One of the strengths of the system we have in Canada is it’s not a money game. Yes, a certain amount is required, but it’s about people. It’s about participation,” he said.

“Canada is worth fighting for, and fighting for in this regard means showing up on the 19th or mailing in your ballot or participating in early voting.”

Voters will face a choice between remaining part of Canada and holding a decisive new referendum on leaving.

Cabinet heard from Calgary Mayor Jeromy Farkas, Red Deer Mayor Cindy Jefferies and Calgary-based pollster Janet Brown on Thursday.

Farkas told reporters he felt “respected and listened to” by cabinet, and that Ottawa has been responding “the right way” to the referendum by being present throughout the province — including in some areas that haven’t seen MPs from outside the province in decades.

“If they had just diminished this to transactions, if they had asked Albertans, ‘What’s it going to take to keep you,’ I think Albertans are smart — we would have been able to see through that,” he said.

He said the referendum question has opened a Pandora’s box that has already caused “tremendous economic damages” and “pitted neighbours against neighbours in Calgary,” and he hopes the question is settled next month.

On the escalating trade war, Carney dismissed Trump’s latest offensive as “relatively modest measures” when compared to other tariffs that Trump has directed at key Canadian sectors. Carney also noted Ottawa is still studying them.

Trump signed executive orders on Tuesday to ban certain Canadian imports later this month, including alcohol, motorcycles and dairy products.

That came after Ottawa levied tens of billions of dollars in counter-tariffs on the United States, a response to Trump slapping new duties on Canadian products following a sudden 11th-hour breakdown in trade talks.

Ian Bremmer, a political scientist and head of the Eurasia Group geopolitical consultancy, was among the guests called to present to cabinet.

Bremmer told reporters ahead of the meetings Thursday that some of the structural changes brought about by Trump will remain popular American policy regardless of who is next in the White House — such as tariffs and industrial policies that support domestic industries.

“There’s almost no one in Washington that actually wants to bring down the deficit. There’s almost no one in Washington that wants to stop taking in income from tariffs when they already get used to it,” Bremmer said. 

Other policies, though, “will not outlast Trump” when he eventually leaves office. He pointed to Trump’s desire to have his name on things, his individual business dealings and his obsession with annexing Greenland.

“It’s very important for Canada to differentiate between the broader structural changes in U.S. policy, and some of the predictability and unreliability of President Trump himself.”

The global-risk consultant said Trump has done “permanent damage” to the U.S.-Canada relationship but there is also a “great deal of repair that can and will be done.”

Bremmer has ties to many people in the prime minister’s orbit. 

Carney’s wife, Diana Fox Carney, still does some work for Bremmer’s firm, which is chaired by Gerry Butts, a former senior aide in Justin Trudeau’s office.

Artificial Intelligence Minister Evan Solomon worked for a subsidiary of the firm before running for office in 2025.

The cabinet retreat comes as the Liberal government plans its agenda for the fall sitting of Parliament, which starts in less than two weeks. Though, no one at the retreat spelled out the government’s fall agenda Thursday.

Ukrainian President Volodymyr Zelenskyy addressed Carney and his front bench hours after the two announced a new partnership on collaborative drone production in Calgary.

Pollsters Bruce Anderson of Spark Advocacy and Sebastien Dallaire of Leger were also on the list to present to ministers Thursday. 

Jonathan Haidt, a social psychologist who has called for a ban on children accessing social media, will speak to cabinet on Friday.

The Liberal government introduced Bill C-34 in June, which would prevent kids under age 16 from creating or accessing social media accounts.

This report by The Canadian Press was first published Sept. 10, 2026.