Carney says he and Trump have agreed to ‘intensify’ trade negotiations
Relations between Canada and its largest trading partner have been tested by US President Donald Trump’s repeated jibes, threats and tariffs. Canadian Prime Minister Mark
Relations between Canada and its largest trading partner have been tested by US President Donald Trump’s repeated jibes, threats and tariffs. Canadian Prime Minister Mark Carney said he and United States President Donald Trump have agreed to intensify trade negotiations, but warned he would consider all options if the tariffs Trump threatened on Monday go ahead. Carney made his remarks to journalists on Tuesday after he and Trump spoke. Trump on Monday unveiled plans for 50 percent tariffs on a wide range of imports from Canada in retaliation for what he described as discriminatory treatment of US-made cars, alcohol and dairy goods. Relations between Canada and its largest trading partner have been tested by Trump’s repeated jibes to make Canada the 51st state, disagreements over a new bridge and sharp comments about wildfire smoke. The tariffs came just before US and Mexican trade negotiators met for a third round of bilateral talks, without Canada. “I’ve spoken with the president; we agree to intensify discussions. We’ll begin that right away, and this is part of the negotiation. So the first objective is to get a comprehensive agreement,” Carney told reporters.
Trump, when asked whether Canada tariffs were in response to the wildfires, said: “No, that’s separate. We’re looking at that separately.” Carney said that Canadian provinces should only lift their bans on US alcohol as part of a broader US trade deal. Nearly every Canadian province except for Alberta and Saskatchewan has banned or severely restricted the sale of American beer, wine and spirits in response to earlier US tariffs. Until then, Canada was the largest importer of US alcohol, at least by volume, and the ban reduced Canadian imports of US wine by more than 80 percent since February 2025, and other alcohol by a similar amount, Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, said in a note. Leaders of Canada’s provinces meeting this week in Prince Edward Island blasted the new tariffs. Ontario Premier Doug Ford, leader of Canada’s most populous province, said Canada should respond “dollar for dollar” to the new tariffs, while Alberta Premier Danielle Smith said the new tariffs would hurt both Canadian and American workers. Saskatchewan Premier Scott Moe called for the government to intensify talks with the US, saying the relationship with Canada’s largest trading partner “is more important than any president or prime minister.” British Columbia Premier David Eby delivered the starkest message: “There is not a chance in hell that US alcohol is going back on the shelves in British Columbia.” Saskatchewan leader Moe said he expected the federal government would be asking provincial leaders to consider restocking their shelves with US alcohol as negotiations continue, however.
