Zinger Key Points
- Carney calls first Trump conversation "constructive" amid tensions over looming 25% car tariff threatening Canada's auto industry.
- Carney vows $42B in retaliation if Trump’s car tariffs proceed, potentially impacting 500,000 Canadian jobs.
- Learn how to trade volatility during Q1 earnings season, live with Matt Maley on Wednesday, April 2 at 6 PM ET. Register for free now.
Canadian Prime Minister Mark Carney reportedly described his first conversation with President Donald Trump as “very constructive.”
BBC reports that the two leaders spoke amid the escalating trade war, particularly over Trump’s proposed 25% tariff on vehicle imports, set to take effect on April 2, which threatens to devastate Canada’s auto industry.
Carney, who took office in mid-March, said that Trump “respected Canada’s sovereignty” during the exchange, despite the President’s previous remarks suggesting Canada should become the 51st state — a statement that has caused significant backlash in Canada.
Trump, for his part, characterized the call as “extremely productive,” signaling a potential shift in tone compared to his jabs at Carney’s predecessor, Justin Trudeau.
“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.
The conversation focused on upcoming negotiations to create a new economic and security relationship following Canada’s federal election on April 28.
Carney has vowed to retaliate against US tariffs, including a $42 billion retaliation on US goods. The looming car tariffs are expected to affect 500,000 Canadian jobs, per BBC.
The trade tensions, exacerbated by Trump’s tariffs on steel and aluminum, have become a central issue in Canada’s election campaign.
Opposition leaders, including Conservative Pierre Poilievre and Bloc Québécois leader Yves-François Blanchet, have expressed concerns that Carney may be willing to make concessions to the US. Carney’s stance, however, remains firm: further retaliatory measures could be on the horizon if Trump follows through with his proposed levies, BBC adds.
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