Canada and U.S. Agree to Post-Election Trade Talks as Carney Threatens Retaliatory Tariffs

Prime Minister Mark Carney and President Donald Trump held their first phone call, agreeing to negotiate a new economic framework after Canada’s April 28 election while tensions rise over impending U.S. auto tariffs.

Mark Carney and Donald Trump described their first phone conversation as constructive, with both leaders agreeing to begin comprehensive economic and security negotiations after Canada’s federal election on April 28.
Carney reaffirmed Canada’s stance to impose retaliatory tariffs if the U.S. enacts its planned 25% auto import tariffs on April 3, calling the U.S. an unreliable partner under Trump’s leadership.
The upcoming Canadian election has tightened, with the Liberal Party gaining momentum due to the collapse of the NDP and heightened nationalism in response to U.S. trade policies and rhetoric.
Trump’s annexation remarks, including calling Canada a potential 51st U.S. state, have fueled diplomatic tensions, with Carney emphasizing a shift away from the historically close Canada-U.S. relationship.
Canada’s economic uncertainty, exacerbated by U.S. trade policies and high provincial deficits, remains a key election issue, as voters assess which leader can best navigate strained U.S. relations.