Quick Hit:
Canadian Prime Minister Mark Carney swiftly announced his intention to begin negotiations with President Donald Trump on a “new economic and security relationship” after Canada was notably excluded from Trump’s latest tariff reprieve.
Key Details:
PM Carney pledged to negotiate with President Trump following Canada’s April 28 federal election.
Trump paused sweeping tariffs for dozens of nations, but left tariffs on Canada, Mexico, and China untouched.
Carney’s pivot contrasts with his earlier pledge to hit the U.S. with retaliatory 25% tariffs on vehicles.
Diving Deeper:
Canadian Prime Minister Mark Carney, head of the Liberal Party and widely expected to retain his post after the April 28 election, issued a notable reversal in tone Wednesday, announcing that he and President Trump would “commence negotiations on a new economic and security relationship” after the vote. The timing and tone of Carney’s statement suggest a recognition that Canada’s economic future hinges on cooperating with President Trump’s tougher, more bilateral approach to global trade.
Carney’s statement followed Trump’s decision to issue a 90-day pause on tariffs for dozens of countries—excluding Canada. “The pause on reciprocal tariffs announced by President Trump is a welcome reprieve for the global economy,” Carney posted on X. But he made no mention of the fact that Canada wasn’t included in the reprieve. Instead, he emphasized bilateral cooperation moving forward and warned Canadians that “the stakes have never been higher.”
Trump’s latest trade action left tariffs intact on Canada, Mexico, and China, underscoring his consistent view that these trading partners have not done enough to merit relaxation of duties. Despite not benefiting from the pause, Carney attempted to strike a diplomatic tone: “As part of today’s announcement, the President has signalled that the US will engage in bilateral negotiations with a number of other countries,” Carney noted. “This will likely result in a fundamental restructuring of the global trading system.”
That cooperative language sharply contrasts with Carney’s posture just two weeks ago, when he responded angrily to Trump’s imposition of a 25% tariff on Canadian goods outside the USMCA agreement. “The Prime Minister informed the President that his government will implement retaliatory tariffs to protect Canadian workers and our economy,” his office stated in a March 29 release, referring to a phone call with the 47th President.
Canada followed through by slapping a matching 25% tariff on U.S. vehicle imports outside the USMCA framework. But the impact was largely symbolic, given Canada’s limited leverage in negotiations with an administration that has shown little patience for multilateralism and globalist economic entanglements. Trump’s continued leverage is evident in how world leaders, including Carney, are recalibrating their positions in response to his firm trade agenda.
With President Trump signaling that the U.S. will only move forward with bilateral, interest-first negotiations, Carney’s pivot may reflect an understanding that ideological resistance to Trump’s policies will not shield Canada from economic consequences. His statement also indicated an interest in diversifying partnerships, but with Washington remaining Canada’s most critical economic partner, Carney’s latest tone is likely an admission of geopolitical reality more than principle.