Tensions Rise as U.S.-Canada Trade Negotiations Loom

U.S. President Donald Trump and Canadian Prime Minister Mark Carney held a productive call amid rising tensions over impending tariffs. Carney plans retaliatory measures and aims to diversify Canada's trade. Both leaders agreed to negotiate a new economic and security relationship post-Canada's April 28 election.

Amid rising tensions over impending tariffs, U.S. President Donald Trump and Canadian Prime Minister Mark Carney engaged in a dialogue described by both as productive on Friday. Despite the constructive tone, Carney confirmed that Ottawa would impose retaliatory tariffs on the United States next week, signaling a strain in the economic relationship.

This marks the first interaction between the two since Carney assumed leadership of Canada's ruling Liberals on March 9. He expressed disappointment over Trump's tariff threats, viewing them as a breach of the historically close economic and security ties between the nations. Trump, acknowledging Canada's sovereignty, suggested a meeting post-Canada's upcoming election to realign economic and political strategies.

Carney, committed to reducing Canada's dependence on the U.S., announced a C$5 billion trade diversification fund aimed at developing infrastructure to explore new trading partnerships. The forthcoming negotiations aim to forge a renewed economic and security pact between the two countries, with a question mark over Mexico's involvement.

(With inputs from agencies.)