US President Donald Trump and Canadian Prime Minister Mark Carney had a telephone conversation recently as tensions over tariffs continue. Trump announced this phone call on the Truth Social website.
Trump Affirms Phone Call with Carney
Trump said that he had a fruitful discussion with Carney and they had an agreement on several issues. He added that they are going to sit down after Canada's election, which is to take place on April 28, to talk about trade and political issues. The Canadian government has not made any comment on the call, however.
US Tariffs Spark Strong Response from Canada
The trade war escalated as Trump placed a 25% tariff on imported vehicles, supplementing earlier tariffs on Canadian imports. Carney was vehemently against this step and suspended his election campaign instantly to discuss matters with his cabinet. He branded the tariffs as unjust and charged Trump with permanently damaging the strong historical relationship between the US and Canada in economic, security, and military partnership. He warned that Canada would retaliate through countermeasures in trade talks.
Possible Effects on the Canadian Auto Sector
The introduction of new 25% tariffs for cars, from April 2, is bound to have devastating effects on the automotive industry of Canada. Economists are already warning that the move is likely to have negative effects on the employment of some 500,000 workers in the sector and take a terrible toll on the nation's economy.
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