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President Donald Trump and Canada’s new Prime Minister Mark Carney have held their first official phone call amid rising tensions between the two countries over escalating trade disputes.

Some shit you should know before you read: As you probably already know, a major trade dispute has been cooking between Canada and the United States, driven by President Donald Trump’s tariff strategy. Trump has imposed tariffs on Canadian steel and aluminum—moves widely seen as provocative and economically damaging. In response, Prime Minister Mark Carney has vowed retaliatory measures to defend Canadian industries, setting the stage for a tit-for-tat trade war.  

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What’s going on now: According to readouts released by both the United States and Canada, the call between President Donald Trump and Prime Minister Mark Carney was described as “cordial,” “constructive, and “extremely productive. Trump, writing on Truth Social, said, “We agree on many things and will be meeting immediately after Canada’s upcoming election to work on elements of Politics, Business, and all other factors, that will end up being great for both the United States of America and Canada.

The Canadian government echoed this tone, noting that the two leaders had a “very constructive conversation” and agreed to initiate comprehensive negotiations on a new economic and security framework following the April 28 election.

During the call, Carney stressed that any progress in bilateral ties would require full respect for Canadian sovereignty. Trump appeared to acknowledge this by using Carney’s correct title—something he did not extend to Carney’s predecessor (whom he called Governor). While speaking to reporters, Carney said, “The president respected Canada’s sovereignty today.”

However, while the tone marked a notable shift, officials also confirmed that Trump made no commitments to reverse or pause tariffs already imposed or planned for Canadian goods.

This all comes as President Trump’s latest round of reciprocal tariffs is set to take effect on April 2, including a sweeping 25% levy on imported cars and auto parts—measures that could soon extend to other key Canadian exports such as pharmaceuticals, lumber, and semiconductors.

In response, Prime Minister Mark Carney warned that the era of deep economic integration with the US was over and emphasized the urgent need for Canada to diversify its trade relationships. He said, “We will need to dramatically reduce our reliance on the United States. We will need to pivot our trade relationships elsewhere, and we will need to do things previously thought impossible at speeds we haven’t seen in generations.”

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