Canadian Prime Minister Mark Carney said Wednesday that U.S. President Donald Trump’s tariffs have driven up costs for American families and upended a decades-old trade relationship as he unveiled a multibillion-dollar plan to shield Canada’s manufacturing heartland from the trade war.
Carney also said he spoke with Trump for “quite some time” about issues including trade, as the U.S. Embassy in Canada accused Canadian politicians of seeking to influence American politics ahead of next month’s midterm elections.
Carney and Ontario Premier Doug Ford rejected suggestions of improper interference.
Trump has openly said he wants automakers to move production from Canada to the United States, threatening an industry deeply integrated across the border for decades.
“U.S. tariffs have upended a trade bargain that’s existed for decades,” Carney said. “They’ve raised costs for American families while putting Ontario workers and businesses at a disadvantage and under a cloud of uncertainty.”
Carney said an integrated North American auto industry would benefit both countries but acknowledged that it may no longer be a priority for Washington. “Their approach has changed,” he said.
“So must ours.”Carney said the conversation covered Iran, the Middle East and some trade issues.
They discussed Ukraine days earlier. He gave no indication of a breakthrough but said Canada remains ready to negotiate.
Trade negotiations collapsed in August after the countries appeared close to a deal.
Trump subsequently imposed 50pc tariffs on about $20 billion in Canadian goods, prompting Canadian retaliation.“It’s clear that Canada’s relationship with the United States has changed permanently,” Ford said.
“No matter what happens in the midterms, no matter who sits in the White House, we’re not going back to the way things were.”
Trump’s trade war and repeated threats to make Canada the 51st U.S. state have fueled a surge in Canadian nationalism.
Carney has made reducing Canada’s dependence on the United States a priority, setting a goal of doubling exports to other markets over the next decade.
Carney and Ford announced the 8.7 billion Canadian dollar ($6.2 billion) plan to support steelmakers, automakers and critical mineral development in Ontario, Canada’s manufacturing heartland.
The plan includes CA$5.2 billion ($3.7 billion) over five years for steelmakers and CA$2.5 billion ($1.8 billion) for automakers, including CA$1.5 billion ($1.1 billion) from Ottawa.
The announcement comes as U.S.-owned steelmaker Cleveland-Cliffs announced layoffs at its Hamilton, Ontario, plant, highlighting the toll of Trump’s tariffs on Canadian manufacturing.
Also Wednesday, the U.S. Embassy issued a fact sheet accusing Canadian politicians of seeking to interfere in American elections.
The statement singled out Industry Minister Mélanie Joly for discussing retaliatory tariffs targeting Republican states and Ford for airing a U.S.
advertisement featuring former President Ronald Reagan criticizing tariffs. Trump abruptly canceled trade talks with Canada after the ad aired during the World Series in October 2025.
The embassy also cited 11 Canadians charged with illegally voting in U.S. elections between 2012 and 2026, without linking the cases to Canada’s government.