Canada has announced a sweeping new initiative to form a global economic coalition of countries that share its values, intentionally excluding the United States. The move is being seen as a direct response to former President Donald Trump’s protectionist tariff regime, which has sparked backlash from traditional allies and fractured America’s global standing.

At a press conference in Ottawa, Canadian Prime Minister, Mark Carney, “If the U.S. no longer wants to lead, Canada will.” The coalition, he said, would focus on fair trade, climate responsibility, labor protections, and democratic cooperation—and would exclude any country that undermines those principles.

The plan is already drawing early interest from European and Pacific nations that have grown frustrated with Trump’s tariff policies, which have targeted friend and foe alike. Canada’s goal is to establish a new framework for trade and investment that rewards transparency and mutual trust, rather than catering to economic coercion and nationalist rhetoric.

Meanwhile, Washington has remained largely silent, with the White House dismissing the plan as “posturing.” But economists warn that the loss of access to such a coalition—especially one with strong buy-in from G7 partners—could accelerate the economic consequences of Trump’s ongoing trade war.

“This isn’t just diplomatic snubbing,” said Columbia economist Ilene Yates. “It’s the start of a new world order in trade. One where the United States is no longer welcome at the grown-ups’ table.”

Markets have reacted nervously, with the U.S. dollar losing ground and multinational firms expressing concern about the long-term consequences of America’s isolationist turn. At the same time, Canadian equities have rallied amid confidence that the country may now assume a new leadership role in global commerce.

As the Trump administration doubles down on nationalist policies, America’s allies appear to be moving on—with or without Washington at the helm.