Trump and Carney Hold “Productive” Talks Amid Rising US-Canada Trade Tensions
Former U.S. President Donald Trump described his first phone call with Canadian Prime Minister Mark Carney as “extremely productive,” as tensions escalate over new trade measures between the two countries.
Posting on Truth Social, Trump said the two leaders had “an extremely productive call” and found common ground on several issues. According to a statement from Carney’s office, the conversation was “constructive,” with both sides agreeing to launch comprehensive negotiations toward a new economic and security partnership. A formal meeting is planned after Canada’s April 28 election.
The dialogue followed Trump’s announcement of a 25% tariff on foreign-made cars, a move he said was designed to revitalize the U.S. auto industry. Canada responded swiftly, with Carney pledging retaliatory tariffs to protect domestic workers and industries.
Speaking Thursday evening, Carney declared that the previous era of U.S.-Canada relations was “over” and announced plans for a “broad renegotiation” of the existing trade deal. Ottawa has already imposed retaliatory tariffs worth C$29.8 billion on U.S. goods.
Despite the existing USMCA free trade agreement negotiated during Trump’s first term, recent developments—including Trump’s renewed threats to annex Canada—have reignited friction between the two allies. Trump reportedly referred to former Prime Minister Justin Trudeau as “governor” and floated the idea of making Canada the 51st state.
Carney, who took over as Liberal Party leader on March 9 following Trudeau’s resignation, has been seen as a potential reset for strained bilateral relations. His previous roles include governor of both the Bank of Canada and the Bank of England.
Trump added that he and Carney agreed to work across political and economic lines “to create something great for both countries.” Carney said talks would intensify between Canadian ministers and U.S. Secretary of Commerce Howard Lutnick to address immediate concerns.
According to the Angus Reid Institute, support for the Liberal Party has surged under Carney’s leadership. A majority of new supporters cited Trump’s aggressive stance as a motivating factor.
While components compliant with the USMCA are currently exempt from the new U.S. car tariffs, the broader impact on Canada’s economy could be significant. Bilateral trade between the two nations is valued at approximately C$1 trillion annually, according to the Canadian Chamber of Commerce.
