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

Former prime minister Stephen Harper said late Wednesday that Canada must urgently pivot in the face of an erratic U.S. president and reduce its dependence on the American market to protect its sovereignty and the continued functioning of the economy.

Speaking at a gala in Ottawa to mark the 20 years since he formed a Conservative government, Harper said while he has "largely stayed silent" on U.S. aggression up until now, he feels compelled to speak out about what he described as an existential threat.

He said the U.S. has become "hostile" and its leader, President Donald Trump, is openly questioning Canadian sovereignty, launching threats and betraying trade deals, which poses a "serious challenge" that demands a muscular response.

While Canadians are "understandingly shocked, bewildered and angry" by what Trump and his enablers have done in recent months, Harper said the country must put emotion aside and focus on policy.

He said many in the business community believe "things will go back to the way they were in due course with secure predictable access" to the U.S. market with an American government that "upholds a global order."

"I do not believe that is a safe assumption," Harper said.

"Canada must adapt to new geopolitical realities. To be clear, these realities mean we must reduce our dependence on the U.S."

While the U.S. will be the country's "principal partner" owing to geography and longstanding trade ties, Harper said Canada's ongoing relationship with the States requires "balanced and sober reflection."

As Canada prepares to review CUSMA, its free trade agreement with the U.S. and Mexico, Harper said the government must ensure two outcomes from those negotiations: protecting Canada's industrial base and preserving the right to sell its critical resources to non-U.S. countries.

Harper said Canada should consider levying tariffs on U.S. goods because a one-sided tariff arrangement could decimate the manufacturing sector.

Prime Minister Mark Carney dropped many of Canada's reciprocal tariffs on U.S. goods last summer as he pushed Trump to end the trade war.

And Harper warned that Canada must not become a captive resource colony of the U.S., shipping its valuable energy and minerals to a single customer.

He said Canada must also push through an oil pipeline to the B.C. coast and streamline regulatory processes to quickly build other projects that can help prop up an economy facing an assault and attract global capital.

"Not someday, but right now," he said. "Friends, we need this."