Is this the start of a trade breakthrough?
In a surprising turn of events, prime minister Mark Carney and US president Donald Trump held what was described as a “productive” and “constructive” phone call on Friday, marking a significant shift in tone amid ongoing trade tensions between the two nations.
A report from BNN Bloomberg highlighted that the call, which Carney characterized as “cordial,” comes after Trump had repeatedly threatened to annex Canada and referred to former prime minister Justin Trudeau as “governor.” During Friday’s conversation, Carney said Trump notably respected “Canada’s sovereignty” and referred to him by his proper title.
“It’s the start of the negotiations, and we’ll see what the US does on April 2,” Carney told reporters in French during a campaign stop at the Port of Montreal. “The spirit of the call was both cordial and focused on making progress.”
Trump echoed this sentiment, stating, “Things are going to work out very well between Canada and the United States,” though he maintained he would “absolutely follow through” with his tariff promises.
The leaders agreed to begin comprehensive negotiations about a new economic and security relationship immediately following Canada’s federal election. In the interim, trade officials from both countries will intensify conversations to address immediate concerns.
John Bolton, Trump’s former national security advisor, cautioned against reading too much into one phone call but noted Trump’s tendency to view international relations through a “personal prism.”
“If Trump believes that he has friendly relations with someone, you know, like Vladimir Putin, then relations between the two countries will be much better,” Bolton told CTV News.
As the federal election campaign enters its second week, the tariff issue has dominated political discourse. Carney announced a $5 billion investment in a Trade Diversification Corridor Fund for infrastructure projects at ports, railroads, airports, and highways as part of his response to US tariffs.
Conservative leader Pierre Poilievre accused both Carney and Trump of favouring taxes on Canadian industry. “Mark Carney and Donald Trump have one thing in common – they both favour taxing Canadian industry. Trump with tariffs and Carney with carbon taxes,” Poilievre said during a campaign stop in British Columbia.
NDP leader Jagmeet Singh, campaigning in Toronto, acknowledged his party’s message hasn’t been resonating with voters but maintained the NDP offers an important choice for Canadians. “All the things that we’re proud of, that we say ‘you know what? This is why we’re proud to be Canadian,’ happened because of New Democrats,” Singh told CP24.
With Trump planning to impose a 25% tariff on vehicles made outside the US starting April 2, Carney informed the president that Canada still plans to impose countertariffs after the US reveals its “reciprocal tariffs.”
The Alliance for Automotive Innovation, representing major automakers, warned the tariffs would increase costs for American consumers, lower vehicle sales, and reduce US auto exports.
