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US President Donald Trump and Canadian Prime Minister Mark Carney have held their first official call amid mounting trade tensions between the two countries. The conversation, described by both leaders as productive, comes just days before Trump’s planned tariffs on vehicle imports take effect—posing a major threat to Canada’s auto industry.
Trump characterized the discussion as “extremely productive” in a Truth Social post, adding that he and Carney plan to meet “immediately” after Canada’s general election on April 28 to discuss “politics, business, and all other factors.” Carney, who is currently on the campaign trail, echoed a positive tone, calling the exchange “very constructive” while reaffirming Canada’s stance on retaliatory tariffs.
High Stakes for the Auto Industry
At the center of the trade dispute is Trump’s proposed 25% tariff on vehicle imports, set to take effect on April 2. The policy is expected to have devastating consequences for Canada’s auto industry, which employs around half a million workers.
Carney made it clear to Trump that Canada will not back down, stating that his government “will implement retaliatory tariffs to protect Canadian workers and our economy.” This move is expected to target key US industries in response to the sweeping tariffs the US has already imposed on Canadian aluminum, steel, and other goods.
The Canadian Prime Minister’s office confirmed that both leaders have agreed to begin comprehensive negotiations on a new economic and security framework immediately after the election. In the meantime, Canada’s Minister of International Trade, Dominic LeBlanc, and US Secretary of Commerce, Howard Lutnick, will lead discussions to address urgent trade concerns.
A Changing US-Canada Relationship
The tone of Friday’s conversation between Trump and Carney marks a shift from the US president’s previous approach to Canada. Trump had repeatedly clashed with former Prime Minister Justin Trudeau, whom he mockingly referred to as “Governor Trudeau.”
Beyond trade tariffs, Trump has also floated the controversial idea of Canada becoming the 51st US state—an idea widely rejected by Canadians. Carney, leader of the Liberal Party, has made it clear that the US is “no longer a reliable trading partner” and declared that the old trade relationship between the two nations “is over.”
With Canada’s general election approaching, the trade dispute has become a major campaign issue. Opposition leader Pierre Poilievre has condemned the tariffs as “unjustified and unprovoked,” while NDP leader Jagmeet Singh labeled them a “betrayal.”
Threats of Further Escalation
Trump has signaled that further trade actions may be on the horizon. The White House has warned that any effort by Canada to collaborate with the European Union against US tariffs could trigger even steeper penalties. “Large-scale tariffs, far larger than currently planned,” Trump cautioned, could follow if Canada seeks economic alliances that challenge US trade policies.
With the auto tariffs set to roll out within days, and Canada poised to retaliate, the US-Canada trade dispute appears far from resolved. The upcoming election in Canada may determine how aggressively Ottawa will push back against Washington’s trade policies in the months to come.
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