Carney, Trump agree to intensify trade talks after tariff shock

Mark Carney said Tuesday that he and Donald Trump had agreed to intensify trade talks after the United States imposed 50% tariffs on most Canadian goods, a move that put about US$20 billion of products in the crosshairs and opened a 30-day window before the levies took effect. The tariffs hit automakers, food processors, farmers, retailers and logistics companies that depend on predictable cross-border rules.

Trump has argued that Canada unfairly discriminated against American autos, alcohol and dairy products, while Ottawa has pushed back as the tariff move threatened to violate the spirit of long-standing trade arrangements. Vehicles, food and other goods can cross the border multiple times before reaching store shelves, leaving manufacturers and shippers exposed to higher costs, delivery delays and pressure to pass those costs on to consumers.

Carney said the negotiations would intensify “right away,” and he signaled that discussions with the United States and other North American partners would continue. The Government of Canada has framed the dispute as a direct challenge to its trade relationship with Washington.

Most premiers pledged to keep bans on U.S. alcohol in place, while Carney said provinces would decide on those measures. Provincial liquor boards and retailers are visible parts of Canada’s response.

The dispute is unfolding as North American trade talks continue under the broader CUSMA and USMCA review process due in 2026. The United States resumed trade talks with Mexico around the same time.