Carney, Trump agree to negotiate new economic, security framework

Prime minister, president strike conciliatory tones after first official call – but tariffs still on agenda

Carney, Trump agree to negotiate new economic, security framework

In a formal statement released Friday, Prime Minister Mark Carney’s office confirmed that Canada will implement retaliatory tariffs in response to U.S. trade measures set to take effect on April 2.

The announcement came following Carney’s first official conversation with U.S. President Donald Trump.

The call, described as "very constructive" by Carney’s office, touched on both economic and security matters between the two neighbours. According to the statement, both leaders agreed to begin comprehensive negotiations on a new economic and security framework after Canada’s general election on April 28.

In the meantime, discussions will intensify between Canada’s Minister of International Trade and Intergovernmental Affairs and President of the King’s Privy Council, Dominic LeBlanc, and U.S. Secretary of Commerce, Howard Lutnick, to address pressing issues.

Carney told Trump that, in the interim, he will be “working hard for the next month to earn the right to represent Canada” in future discussions. He also confirmed that his government will proceed with retaliatory tariffs “to protect Canadian workers and our economy” following the U.S.’s announcement of additional trade measures.

A number of companies have started laying off workers as Trump imposed tariffs on Canadian steel and aluminum products, and many more are expected to lose jobs, according to a report.

BBC: Trump calls first Carney conversation 'extremely productive'

The BBC reported that Trump characterised his initial call with Carney as "extremely productive." In a post on Truth Social, the U.S. president said he and Carney would meet “immediately” after Canada’s election to discuss "politics, business, and all other factors."

The report noted that the phone call—Carney’s first with Trump since becoming prime minister on March 14—comes against a backdrop of escalating trade tensions. Trump’s proposed 25% tariff on vehicle imports, set to begin April 2, has raised alarm within Canada’s auto industry, with the potential to impact as many as 500,000 jobs.

Carney, who is campaigning for re-election, has sharply criticized the U.S. actions, calling them a sign that America is “no longer a reliable trading partner.” He said that Canada’s historic trade relationship with the U.S. “is over,” vowing to impose retaliatory tariffs with “maximum impact.”

The BBC also highlighted the Canadian prime minister’s office confirmation that direct conversations between cabinet-level officials will accelerate ahead of the broader talks.

Trump’s approach to Carney marks a significant departure from his adversarial tone toward former Prime Minister Justin Trudeau, whom he often disparaged. The president’s recent remarks have sparked further controversy, including repeated suggestions that Canada should become the 51st U.S. state—an idea broadly rejected by Canadians.

In response to economic uncertainty triggered by U.S. tariffs, Canada’s federal government has rolled out temporary, expanded rules for Employment Insurance (EI) coverage.

CTV: Trump takes softer tone but sticks to tariff plan

In an unexpected softening of rhetoric, President Trump told reporters that he expects the Canada-U.S. relationship will improve.

“I think things are going to work out very well between Canada and the United States,” Trump said during a press conference, according to CTV News.

While reaffirming that his administration would move ahead with new tariffs on Canadian imports, Trump added, “I’m not referring to Canada” when discussing countries he accuses of exploiting the U.S.

He later remarked: “We’re going to end up with a very good relationship with Canada.”

Despite this shift in tone, Trump confirmed he would “absolutely follow through” with the proposed tariffs, which include sweeping duties on vehicles and parts starting in April and May.

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