As Canada and the world continue to feel the impact of President Donald Trump’s global trade war, Prime Minister Mark Carney says he wants the country in “the best possible position” for negotiations with the U.S. after the federal election is over.
Carney, who retains his caretaker role as prime minister during the campaign, was back in Ottawa to convene a meeting of the cabinet committee on Canada-U.S. relations and national security Friday morning.
Speaking to reporters after the meeting, Carney said the committee had a “good, long discussion” about the fallout of the Trump’s global tariff policy that has rattled stock markets at home and abroad this past week.
The cabinet committee discussed the initial signs of slowing in the global economy, impacts on the Canadian economy and labour market, he said.
“We reviewed our response to those tariffs, our core strategy of to fight, to protect and to build,” Carney said.
“We left instructions for officials to ensure that the next government, whichever government, Canadians choose will be in the best possible position for negotiations with the United States, which, as the president and I have agreed, will begin from the start of May.”
This is the third time that Carney has temporarily suspended his campaign as the Liberal party leader to co-ordinate a response to Trump’s trade actions.
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The meeting comes on the heels of a chaotic week for the global stock markets that have nosedived since Trump announced his sweeping “reciprocal” tariffs last week before hitting a 90-day pause on that policy for more than 75 countries to allow for negotiations.
Canada was not included in that list of countries to face “reciprocal” tariffs but does face three other sets of tariffs imposed over the last six weeks: 25 per cent general U.S. export tariffs on non-CUSMA-compliant goods, 25 per cent tariffs on steel and aluminum exports to the U.S. and 25 per cent auto sector tariffs.
At a campaign stop in Brampton, Ont., on Thursday, Carney said Trump’s halt is “a welcome reprieve for the global economy,” but “the impacts of other tariffs and the threat of future tariffs are already being felt around the world and here at home.”
“So, the stakes have never been higher for our economy,” Carney said while announcing that he will be returning to Ottawa.
Canada has already responded to Trump’s trade actions with counter-tariffs on almost $60 billion worth of American goods, which were announced in retaliation for the 25 per cent tariffs on all Canadian goods and a subsequent round that was retaliation for the steel and aluminum tariffs.
Canada’s counter-tariffs on U.S.-made vehicles went into effect Wednesday.
Carney spoke to Trump for the first time since being sworn in as the prime minister late last month, agreeing that the two countries would start negotiations immediately after the federal election.
Canadians are set to go to the polls on April 28.
Trump’s trade war and repeated threats to make Canada the 51st U.S. state have emerged as key focal points for Canadians and the federal party leaders in this election.
Conservative Leader Pierre Poilievre and NDP Leader Jagmeet Singh weighed in on the trade tensions and Canada’s response Friday.
Poilievre said Carney “has no control” over Trump, adding that “he should stop promising that he does.”
“While the rest of the world is getting pauses on Trump’s tariffs, there are more tariffs on Canada today than when Mark Carney became prime minister,” Poilievre said during a press conference in St. Catharines, Ont.
“I’m not blaming Mr. Carney for that. He has no control over President Trump.”
Speaking to reporters in Ottawa, Singh said he agrees with Carney’s approach of imposing retaliatory tariffs on the U.S.
“I think a lot of Canadians are feeling scared, there’s a lot of uncertainty and in all of that, there’s going to be some really important decisions,” he said.
“The first budget will be a very important budget about how we respond to the threats of Donald Trump and in that discussion, I’m encouraging Canadians to consider that Canada works best when one party doesn’t have all the power.”
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