Mark Carney stands up to Donald Trump. Canada prepares countermeasures on US tariffs

Canadian Prime Minister Mark Carney and US President Donald Trump held their first official call since Carney took office on March 9, discussing trade and security amid escalating tensions over impending US tariffs on Canadian goods.

Carney described the conversation as “cordial” and “substantive” but made it clear that Canada would not back down in the face of new trade barriers imposed by Washington.

Canada to impose countermeasures

With the US set to impose new tariffs on Canadian autos, steel, and aluminum starting April 2, Carney announced that his government is ready to respond decisively.

"I informed President Trump that my government will be implementing counter tariffs to protect Canadian workers and our economy following the announcement of new trade actions by the United States," Carney told reporters.

While he pushed for Trump to reconsider the tariffs, said the US president gave no indication of backing down.

New economic and security talks planned

Despite the tariff dispute, both leaders agreed to launch negotiations on a broader economic and security framework.

“The call was very productive and very constructive,” Carney said, emphasising that the talks were just beginning.

Trump, speaking separately, expressed optimism, saying he believes “things will work out very well” between the two countries.

Carney pushes for trade diversification

Carney reiterated his commitment to reducing Canada’s economic reliance on the US and expanding trade partnerships globally.

“If I win the election, I will set up a C$5 billion trade diversification fund to help the construction of ports, railroads, inland terminals, airports, and highways,” he announced.

While Canada remains committed to the United States-Mexico-Canada free trade deal (USMCA), Carney said it was unclear whether Mexico would join the new economic security talks, though Canada would prefer its involvement.