Canadian Prime Minister Mark Carney officially broke things off with the United States Thursday, marking a seismic shift in relations between the longtime allies.

“The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over,” Carney said during a press conference, following a meeting in Ottawa with his ministers to “discuss trade options” in response to Donald Trump’s “permanent” 25 percent tariffs on all imported vehicles and auto parts.

“What exactly the United States does next is unclear, but what is clear, what is clear is that we as Canadians have agency. We have power. We are masters in our own home,” Carney said.

“We can control our destiny. We can give ourselves much more than any foreign government, including the United States, can ever take away. We can deal with this crisis best by building our own strength right here at home.”

Carney warned that Canada, which is currently one of the top importers of U.S. goods, would need to reshape its economy to wean itself off its southern neighbor.

“We will need to dramatically reduce our reliance on the United States. We will need to pivot our trade relationships elsewhere. And we will need to do things previously thought impossible at speeds we haven’t seen in generations,” Carney said.

On Wednesday, Carney called the latest round of tariffs a “very direct attack.”

“We will defend our workers. We will defend our companies. We will defend our country,” he said at the time.

Back stateside, the Big Three automakers took an immediate hit Thursday as the market digested Trump’s tariff announcement, with new tariffs on vehicles expected to go into effect on April 3 and on vehicle parts one month later.

The White House has pretended that the steep tariffs on Canada are a bargaining chip to help curb illegal drug trafficking—a threat so minor that it warranted no mention in the Trump administration’s first Annual Threat Assessment—but Trump openly admitted that he hoped to use tariffs to bully Canada into becoming a U.S. state. His bullying has since escalated into an all-out trade war, which could potentially devastate states along America’s northern border.