Prime Minister Mark Carney said Canada and the United States will begin comprehensive negotiations for a "new economic and security relationship" immediately after the Canadian election following a Friday morning phone call with U.S. President Donald Trump.
In a statement issued by the Prime Minister's Office, Carney called the call "constructive" while a social media post from Trump described the discussion as "extremely productive."
Carney told Trump in the phone call that Canada will be implementing new retaliatory tariffs to protect the Canadian economy and workers next week if the president goes ahead with his plan for "reciprocal" tariffs by increasing U.S. duties to match the tax rates that other countries charge on imports on April 2.
Trump's social media statement said he and the prime minister agreed on many things, and he would be meeting with Carney immediately after the election to "work on elements of politics, business, and all other factors."
Carney's statement said he will be working hard during the election to "earn the right to represent Canada" in the discussions the two countries will have following the vote on April 28.
When asked about Canada's plan for retaliatory duties later Friday, Trump said he "absolutely" would respond with largescale tariffs but his answer mainly focused on the "very good conversation" he had with Carney.
"We had a very good talk, the prime minister and myself," Trump said in the Oval Office. "And I think things are going to work out very well between Canada and the United States."
The call was the first between the two leaders since Carney was sworn in on March 9.
Trump's response was a shift in tone from his statements on Canada in recent months in which he repeatedly threatened Canada's sovereignty, insisted Canada would be better off as a U.S. state and referred to former prime minister Justin Trudeau as a "governor."
In his statement Friday Trump referred to Carney as Canada's prime minister.
Carney's office said before official discussions begin, Trade Minister Dominic LeBlanc would "intensify" conversations with U.S. Secretary of Commerce Howard Lutnick on concerns during the election.
Carney is scheduled to speak to the media Friday afternoon following a virtual meeting with Canada's premiers. The Liberal leader has been pulled away from campaigning this week to respond to Trump's executive order on Wednesday that will slap automobile and auto part imports to the U.S. with a 25 per cent tariff next Thursday.
It's unclear how Canada will ultimately be impacted by those levies. Ontario Premier Doug Ford has said Lutnick indicated auto tariffs won't include Canadian-made vehicles with 50 per cent or more American parts.
A fact sheet provided by the White House said automobiles imported under the Canada-U.S.-Mexico Agreement on trade will only be tariffed on the value of content not made in the United States.
Bloc Québécois Leader Yves-François Blanchet said he was glad Trump called it a productive call, but said he wants clarity on issues affecting Quebec in trade disputes, including supply management, softwood lumber, culture and aluminum.
— With files from Kelly Geraldine Malone in Washington
This report by The Canadian Press was first published March 28, 2025.
