By Paul Vieira
OTTAWA–Canadian Prime Minister Mark Carney said he and President Trump agreed that negotiations on a new economic and security partnership between the two countries should begin immediately after Canada’s April 28 election.
In the meantime, Carney warned Trump that the Canadian government would impose retaliatory tariffs on U.S. goods following the planned reveal on April 2 of new U.S. duties on a range of global imports–among them, Canadian-made vehicles and auto parts.
Carney said Trump provided no indication in their conversation Friday that he would lift or ease 25% tariffs already in place on Canadian steel and aluminum, or the planned 25% duties on Canadian-made auto-sector products and other goods.
Canada’s Prime Minister’s Office released a summary of the call between the two leaders, about 90 minutes after Trump said in a Truth Social post that the two men had an “extremely productive” conversation. Unlike past posts from Trump when Justin Trudeau was prime minister, the U.S. president referred to Carney as prime minister, not governor, and there was no mention of Canada becoming the 51st state.
“The president respected Canada’s sovereignty today, both in his private and public comments,” said Carney, who had previously said that ceasing talk of Canada as a 51st state was a precondition of talks between the neighbors.
In Oval Office, Trump said he and Carney “had a very good talk,” and “I think things are going to work out very well between Canada and the United States.”
Trump has repeatedly threatened Canada with hefty, broad-based tariffs, of up to 25%, on all Canadian imports. The trade-policy uncertainty has compelled Canadian companies to freeze hiring and investment plans, while households suggest increased concern about job security and are adjusting their spending accordingly. Most economists expect a recession for Canada, beginning in the second quarter.
On Thursday, after Trump’s announced 25% tariffs on Canadian cars and auto parts, Carney warned the decades-old relationship between Canada and U.S., highlighted by deep supply-chain integration cooperation, was over.
“It is clear that the U.S. is no longer a reliable partner,” Carney said. “It may be that through comprehensive negotiations, we can restore some element of trust, but there will be no going back.”
Carney said Friday he was optimistic that Ottawa and Washington can make “major progress” once talks begin on a new bilateral economic-and-security pact. “But this is different from the world of the 1990s,” he said.
“The key here is that it’s not a process for increasing the integration between the two nations,” Carney said. “This is different. So the momentum has changed.”
“We can create links with other economies around the world, and we intend to do it,” he added.
Vice-President JD Vance, during a stop in Greenland, said “there is no way that Canada can win a trade war with the U.S.” Vance said Trump’s goal is to create a level-playing field between the U.S. and Canada.
Carney said that Canada would “only agree to things that are in Canada’s interests.” For instance, Carney said that, as prime minister, he would refuse to make changes to the country’s rules designed to protect Canadian dairy farmers–rules that Trump has criticized.
Canada’s summary of the call between Carney and Trump indicated talks between Canadian Trade Minister Dominic LeBlanc and U.S. Commerce Secretary Howard Lutnick would “intensify to address immediate concerns.”
Carney said this week that Canada could consider export taxes on key commodities that the U.S. buys, such as energy and agriculture products, should the trade conflict escalate.
Carney is seeking a mandate from voters in an election set for April 28, and polls indicate that either the Liberals hold a lead or are in a tight race with the Conservative Party. Carney told Trump that he would like to be Canada’s representative in any talks on a revised economic-and-security pact.
Write to Paul Vieira at [email protected]
(END) Dow Jones Newswires
03-28-25 1809ET
