Canadian Prime Minister Mark Carney and U.S. President Donald Trump are expected to speak in the coming days amid escalating trade tensions following the U.S. administration's announcement of a 25% tariff on auto imports from Canada and other nations. Carney, who assumed office on March 14, stated that he would engage in discussions with Trump soon, emphasizing the necessity for the U.S. to respect Canada's sovereignty. ​

The imposition of these tariffs has prompted Carney to declare the end of the traditional Canada-U.S. relationship, highlighting the need for Canada to fundamentally reimagine its economy and reduce reliance on the U.S. He has indicated that Canada is prepared to retaliate with its own trade measures, potentially imposing tariffs worth up to C$155 billion on U.S. products.

The automotive industry, a critical sector for both countries, is anticipated to experience significant disruptions due to these tariffs. Ontario Premier Doug Ford and Unifor president Lana Payne have expressed concerns about the potential economic impact on workers and businesses. Carney has also announced a CA$2 billion fund to support Canadian auto workers affected by the tariffs.

This development has further strained Canada-U.S. relations, with Carney asserting that the old relationship based on deep economic integration and security cooperation is over. He has called for a comprehensive renegotiation of trade agreements and a pivot towards building new economic partnerships.