**The ongoing trade conflict between the U.S. and Canada intensifies as President Trump and Prime Minister Carney engage in their first meaningful conversation since Carney's election.**
**Trump and Carney Engage in Constructive Dialogue Amid Trade Tensions**

**Trump and Carney Engage in Constructive Dialogue Amid Trade Tensions**
**First calls signal potential shifts as Canadian PM Carney assures retaliation against tariffs.**
U.S. President Donald Trump characterized his first call with Canadian Prime Minister Mark Carney as "extremely productive," amidst escalating trade tensions between the neighboring countries. This conversation took place via a post on Truth Social, where Trump signaled plans for an in-person meeting "immediately" after Canada's elections scheduled for April 28, to cover various topics including "politics, business, and all other factors."
Carney, who is currently campaigning, described the dialogue as "very constructive," emphasizing his commitment to implementing retaliatory tariffs to defend Canadian workers while addressing the U.S. president's planned 25% tariffs on vehicle imports, set to go into effect on April 2, which could severely affect Canada's automotive industry.
Traditionally, new Canadian prime ministers prioritize a phone call with their U.S. counterparts soon after taking office. This particular communication marks the first between Carney and Trump since Carney's assumption of leadership on March 14. Both administrations agreed to initiate detailed discussions on a new economic and security arrangement right after the Canadian elections. In the meantime, officials from both sides, such as Canada's International Trade Minister Dominic LeBlanc and U.S. Commerce Secretary Howard Lutnick, will intensify talks to handle urgent matters.
Trump's recent remarks indicate a shift in his tone compared to his previous derogatory comments towards Carney's predecessor, Justin Trudeau. The U.S. president's past suggestions of incorporating Canada as the "51st state" have prompted significant backlash in Canada.
In the lead-up to the call, Carney asserted that the U.S. is "no longer a reliable trading partner," affirming that its longstanding relationship with Canada has changed. The Liberal Party leader has committed to enacting retaliatory tariffs with "maximum impact" against the U.S., once further reductions on trade are imposed on April 2, 2025.
The anticipated automotive tariffs may jeopardize around 500,000 jobs in Canada's automotive sector, exacerbating ongoing economic grievances. The U.S. has already instituted a blanket 25% tariff on Canadian goods and imposed additional duties on aluminum and steel. Thus far, Canada has retaliated with approximately C$60 billion (about $42 billion) in tariffs on U.S. exports.
The upcoming tariffs on vehicles are expected to activate charging fees for importing businesses the day after the announcement and to affect parts starting later in May. The deteriorating diplomatic relations are becoming a prominent issue in Canada's general elections, with Conservative Party leader Pierre Poilievre labeling the tariffs as "unjustified and unprovoked," while leftist NDP leader Jagmeet Singh called them a "betrayal."
As conflicts surface, Trump has cautioned Canada against collaborating with the European Union regarding unilateral tariffs, stating that such actions would provoke "large-scale tariffs" exceeding current proposals.