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Is a ‘world order in upheaval’ leading Canada into a new leadershiprole?

by Dr. Bernd Althusmann, Marie Yamada

Why geopolitical upheavals will redefine Canada's role in the international world order and in the transatlantic alliance

The ongoing trade war with the United States remains one of the country’s greatest challenges. Canada therefore intends to further expand its partnerships with Europe and the Indo‑Pacific region. As early as November 2025, Carney spoke of an epochal rupture and a shift toward a new world order that may be shaped by serious conflicts and a closer alignment among middle powers. The anticipated withdrawal of the United States could herald profound changes to the “old NATO” and necessitate a new security architecture. Canada will now have to demonstrate its readiness to assume greater responsibility and leadership as a middle power. However, the challenges facing the incumbent Carney government remain enormous—particularly on the domestic front. High unemployment, especially among younger generations, a shortage of affordable housing, and substantial defence spending require clear answers and a decisive political course. Prime Minister Carney and his minority government must deliver.

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Please note that the full-lenght report is only available in German.

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Contact Dr. Bernd Althusmann
Dr. Bernd Althusmann
Head of Canada Office
bernd.althusmann@kas.de + 1 (613) 422-4308

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