President Donald Trump and Canadian Prime Minister Mark Carney engaged in a productive dialogue on Friday. The conversation marked the first interaction between the two leaders since Carney assumed leadership of Canada’s ruling Liberals on March 9.
What Happened: Trump expressed optimism about future collaborations, stating on Truth Social that they would meet after Canada’s upcoming election to discuss politics, business, and other areas.
“It was an extremely productive call, we agree on many things, and will be meeting immediately after Canada’s upcoming Election to work on elements of Politics, Business, and all other factors,” Trump wrote on his social media platform Truth Social.
Despite the positive tone, Carney announced Ottawa’s plan to impose retaliatory tariffs next week.
Carney, addressing a press conference in Montreal, highlighted the cordial nature of the call and emphasized that Canada’s sovereignty was respected by Trump.
He reiterated Canada’s intention to implement counter tariffs to safeguard its economy and workers following the U.S.’s planned trade actions on April 2, according to a report by Reuters.
Relations between the U.S. and Canada have been strained since Trump took office, but both leaders agreed to initiate comprehensive negotiations on a new economic and security relationship post-election.
Carney also mentioned the possibility of including Mexico in these discussions, aligning with the United States-Mexico-Canada free trade deal.
He further outlined plans for a C$5 billion trade diversification fund to reduce Canada’s economic reliance on the U.S.
Why It Matters: The backdrop to this conversation includes a series of escalating trade tensions between the U.S. and Canada.
Recently, Trump imposed a 25% tariff on auto imports, a move criticized by both Canada and the EU. This tariff, effective April 3, aims to boost domestic production but could financially strain automakers reliant on global supply chains.
In response, Canada suspended Tesla Inc. TSLA from its EV rebate programs, citing the tariffs as illegitimate and illegal. This suspension will remain until each rebate claim is thoroughly verified.
Additionally, Carney called for a snap election on April 28, seeking a strong mandate to address these trade challenges. The election announcement followed his recent assumption of office after Justin Trudeau’s resignation.
Moreover, Canada is reconsidering its order for F-35 fighter jets from Lockheed Martin Corp. LMT due to these strained relations.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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