Canadian Prime Minister Mark Carney said yesterday (21 October) that US President Donald Trump's tariffs have increased costs for American families and disrupted a decades-old trade relationship as he announced a multibillion-dollar plan to protect Canada's manufacturing heartland from the trade war.
Carney also said he had spoken with Trump for "quite some time" about trade and other issues, as the US Embassy in Canada accused Canadian politicians of attempting to influence American politics ahead of next month's midterm elections. Both Carney and Ontario Premier Doug Ford rejected allegations of improper interference.
Trump has openly expressed his desire to shift automobile production from Canada to the United States, threatening an industry that has been deeply integrated across the border for decades.
"US 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 automotive industry would benefit both countries, but acknowledged that Washington might no longer consider it a priority.
"Their approach has changed," he said. "So must ours."
Carney said his conversation with Trump covered Iran, the Middle East and several trade issues. The two leaders had discussed Ukraine a few days earlier.
Although Carney gave no indication of a breakthrough, he said Canada remained ready to negotiate.
Trade negotiations collapsed in August after the two countries appeared close to reaching an agreement. Trump subsequently imposed 50% tariffs on about $20 billion worth of Canadian goods, prompting retaliatory measures from Canada.
Ford says Canada-US relations will not return to previous state
Ford said Canada's relationship with the United States had undergone a permanent change.
"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 US state have fuelled a surge in Canadian nationalism.
Carney has prioritised reducing Canada's dependence on the United States, setting a target of doubling exports to other markets over the next decade.
Billions allocated to protect Canadian industries
Carney and Ford announced an 8.7 billion Canadian dollar ($6.2 billion) plan to support steelmakers, automakers and critical mineral development in Ontario, the country's manufacturing heartland.
The package 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) in federal funding.
The announcement came as US-owned steelmaker Cleveland-Cliffs announced layoffs at its plant in Hamilton, Ontario, highlighting the impact of Trump's tariffs on Canadian manufacturing.
US Embassy accuses Canadian politicians of interference
Also on Wednesday, the US 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 broadcasting a US advertisement featuring former President Ronald Reagan criticising tariffs.
Trump abruptly cancelled trade talks with Canada after the advertisement aired during the World Series in October 2025.
The embassy also cited 11 Canadians charged with illegally voting in US elections between 2012 and 2026, without linking the cases to the Canadian government.
The Trump administration has launched a government-wide effort to investigate and prosecute noncitizen voting, which election experts and administrators describe as a relatively minor issue.
The US Department of Justice says it has arrested more than 200 people since the beginning of 2026 for illegally voting as noncitizens in past elections. The number is extremely small compared with the country's tens of millions of regular voters.
"The items featured in the US embassy's 'fact sheet' are not genuine examples of foreign interference and the implicit assumption that Canada could significantly alter the outcome of the midterms is absurd," said Daniel Béland, a political science professor at McGill University in Montreal.
"Accusing Canada of foreign interference ahead of the midterms could pave the way to 'Blame Canada' rhetoric after the electoral results are in."
Carney said Canada was responding to US tariffs, while Ford denied having any interest in interfering in American elections.
Carney said Canadian automotive exports to the United States had declined by more than 10%, while US exports to Canada had fallen by more than 20%.
"Tariffs make both our industries weaker and reduce choice for our families," Carney said.