Incoming prime minister says future talks need fair trade and sovereignty protections
Canada’s incoming prime minister Mark Carney said he is open to trade discussions with US president Donald Trump, but only under conditions that respect Canadian sovereignty and promote a broader, fairer trade agreement.
“We are ready to sit down with the Americans, with the US government,” Carney said after meeting with steelworkers in Hamilton, Ontario.
“I’m ready to sit down with President Trump at the appropriate time, under a position where there’s respect for Canadian sovereignty and we’re working for a common approach, a much more comprehensive approach for trade.”
Carney’s remarks come as Canada imposes new 25% retaliatory tariffs on $29.8 billion worth of American imports, including steel, aluminum, computers, and sports equipment. The countermeasures are part of Canada’s response to Trump’s reinstated tariffs on Canadian steel and aluminum, which took effect on Wednesday.
“We don’t want to do this, because we believe in open borders and free and fair trade, but we’re doing this in response,” Carney said, emphasizing that the proceeds from these tariffs will be directed toward supporting affected industries and workers.
Trump’s tariffs, which extend to a range of steel and aluminum products, have disrupted trade expectations between the two nations. The US president has linked the measures to claims about fentanyl trafficking and illegal border crossings from Canada, allegations that US government data does not support.
The Canadian government isn’t alone in its pushback. The European Union has also announced countermeasures, implementing 50% tariffs on US products such as whiskey, motorcycles, and motorboats. Meanwhile, Mexico has held off on revealing its full retaliation plan until Trump’s next round of tariff decisions, expected in April.
At home, Canadian leaders are watching closely. Ontario premier Doug Ford expressed optimism that Carney might improve relations with Trump, contrasting his approach with that of outgoing Prime Minister Justin Trudeau.
"It’s going to be a better relationship than with Prime Minister Trudeau,” Ford said after meeting with Carney in Toronto.
Finance Minister Dominic LeBlanc, who is set to travel to Washington, has made it clear that Canada’s priority is to get US tariffs lifted and prevent further trade penalties set to take effect in April. However, he denied that discussions would focus on renegotiating the Canada-US-Mexico trade deal ahead of its scheduled 2026 review.
The Trump administration remains firm on its stance, with Commerce Secretary Howard Lutnick and Secretary of State Marco Rubio backing the tariff measures. Rubio dismissed speculation that Trump’s latest trade moves are linked to discussions about Canada’s economic integration with the US, saying that such claims are “not on the agenda” for upcoming international meetings.
Trump, however, has continued to push the idea that Canada would benefit from closer economic ties with the US, stating that making Canada “the 51st state” would resolve border and trade disputes. Canadian officials, including foreign affairs minister Mélanie Joly, have strongly rejected such rhetoric.
Read more: Forget becoming the 51st state – what could Canada's mortgage industry learn from America?
“The latest excuse [for tariffs] is national security,” Joly said, calling Trump’s justification for the trade penalties misleading. “It’s ultimately the future of our country that’s in doubt.”
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