In another ground-breaking move, the U.S. and Canadian federal governments met in their very first call. With new Canadian Prime Minister Mark Carney taking office on March 14, this meeting signified the beginning of these negotiations. US President Donald Trump reacted to the call, calling it “very, very productive.” First, it addressed the worsening trade conflict between the two countries. To recap, Trump is planning on slapping a 25% tariff on all vehicle imports as of April 2. Carney cautions that Canada will be forced to respond with retaliatory countermeasures. Toh noted that more retaliatory tariffs could be in the offing if Trump goes ahead with these auto tariffs and other tariffs.
The Canadian auto industry is at a pivotal moment, one where the upcoming US tariffs could inflict fatal blows. Up to half a million Canadian jobs would be at stake with Trump’s auto tariffs, a prospect that Trudeau is desperately trying to avoid. Carney even went so far as to underscore the seriousness of the situation. He announced that Canada’s traditional trading relationship with the US “is over” and has called the US a “no longer reliable trading partner.”
Carney has promised to take retaliatory tariffs with the most “maximum impact” on the US. His office assured us that high-level talks between Canadian and US officials would escalate in order to deal with pressing issues as they arose.
“In the interim, the leaders agreed that conversations between the Minister of International Trade and Intergovernmental Affairs and President of the King’s Privy Council for Canada, Dominic LeBlanc, and the United States Secretary of Commerce, Howard Lutnick, will intensify to address immediate concerns.” – The Canadian Prime Minister’s office
Tensions were by no means low on the call to begin with. The US has non legally imposed this blanket 25% tariff on all Canadian goods as well as a 25% duty on all Canadian aluminum and steel imports. In spite of these challenges, Trump seemed hopeful that the two nations could soon have more cordial relations.
“I think things will work out very well between Canada and the United States.” – US President Donald Trump
Trump’s repeated suggestions that Canada should become the 51st US state have added another layer of complexity to their relationship. Assessment Carney’s response was to double down on Canada’s sovereignty and intention to protect its workers.
“We will implement retaliatory tariffs to protect Canadian workers.” – Canadian Prime Minister Mark Carney
The leaders have committed to rendezvousing “immediately” after Canada’s expected elections on April 28. This meeting is expected to be a key step in resolving the nearly two-year-long trade conflicts. On… In their joint readout of the call, both leaders described their conversation as constructive.
“We had a very good conversation. The prime minister – they’ve got an election going on, so we’re going to meet after the election.” – US President Donald Trump
Carney’s high-profile opposition to Trump’s actions is a testament to his commitment to protecting Canada’s economic interests. On the Administration’s call, he joined other stakeholders in bluntly warning them about the harm that these tariffs could cause.
“We have liberation day, as you know, on April 2 and, I’m not referring to Canada, but many countries have taken advantage of us.” – US President Donald Trump