Trump Hosts New Canadian Prime Minister Carney Amid Trade Tensions

WASHINGTON—President Donald Trump hosted Canada’s new prime minister, Mark Carney, at the White House on May 6 for high-stakes talks focused on trade and security.

The meeting came amid heightened tensions between the two allies, following Trump’s imposition of steep tariffs on Canadian products and ongoing remarks suggesting that Canada should become the 51st U.S. state.

It was the first meeting between the two leaders since Carney’s Liberal Party secured victory in Canada’s April 28 federal election.

Trump congratulated Carney for his election victory, stating: “That was a great election. We were watching it with interest, and I think Canada chose a very talented person, very good person.

“We have some tough, tough points to go over, and that’ll be fine.”

During the meeting, Carney said he was elected to “transform Canada.”

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“We’re stronger when we work together. And there’re many opportunities to work together. And I look forward to addressing some of those issues that we have,” Carney said in his opening remarks.

When asked about his previous statements about annexing Canada as the 51st U.S. state, Trump said: “I still believe that. But, you know, it takes two to tango, right?”

He said it would amount to “a massive tax cut for the Canadian citizens.”

Carney dismissed the idea, stating that Canada “is not for sale.”

Trump replied, “Never say never.”

Both leaders expressed interest in renegotiating the United States–Mexico–Canada Agreement (USMCA), the trade deal that replaced the North American Free Trade Agreement during Trump’s first term.

Trump said that former Canadian Finance Minister Chrystia Freeland had hurt the USMCA “very badly.”

“We do have a negotiation coming up over the next year or so to adjust it or terminate it,” Trump said of USMCA.

“It’s going to have to change,” Carney added in response.

“That’s part of what we’re going to discuss,” he said.

Minutes before Carney’s arrival at the White House, Trump repeated his earlier messaging about the United States not needing Canadian products.

“I very much want to work with him, but cannot understand one simple TRUTH—Why is America subsidizing Canada by $200 Billion Dollars a year, in addition to giving them FREE Military Protection, and many other things?” Trump wrote in a Truth Social post.

“Canada is a place that will have to be able to take care of itself economically,” Trump said during his meeting with Carney.

Canada and Mexico were excluded from Trump’s international reciprocal tariff regime as both countries are already subject to 25 percent tariffs due to ongoing U.S. concerns over illegal immigration and fentanyl trafficking. An exception was made for Canadian energy products and potash, which were instead covered by a lower 10 percent tariff.

Additionally, the United States maintains a 25 percent tariff on steel and aluminum imports and a 25 percent tariff on all automobile imports, with an exemption for U.S. content. These tariffs have a significant impact on Canada.

On May 4, Trump also announced plans to impose a 100 percent tariff on foreign-made films, a move that could affect Canada’s film industry.

In retaliation, Canada has implemented 25 percent tariffs on certain U.S. goods, including steel and aluminum products and auto imports.

“Again, remember this, we don’t need their cars, we don’t need their lumber, we don’t need their energy. We don’t need anything,” Trump said on NBC’s “Meet the Press” on May 4. “We do very little business with Canada. They do all of their business practically with us. They need us, we don’t need them.”

On May 5, in an interview with Fox Business, U.S. Commerce Secretary Howard Lutnick downplayed the likelihood of reaching a trade deal with Canada soon, describing the situation as “very complex.”

“They have their socialist regime and it’s basically feeding off of America,” Lutnick said, in reference to the Liberal Party of Canada.

During the NBC interview, Trump dismissed the idea of lifting tariffs, saying, “I wouldn’t do that because if somebody thought they were going to come off the table, why would they build in the United States?”

When asked whether he would consider using military force to annex Canada, Trump said such a scenario is “highly unlikely.”

“I think we’re not going to ever get to that point. It could happen. Something could happen with Greenland, I’ll be honest. We need that for national and international security,” Trump told NBC.

“I don’t see it with Canada. I just don’t see it. I have to be honest with you.”

Following his election win, Carney had a phone call with Trump. On April 30, Trump said the candidate who hated him “the least” had won the election. Trump had earlier said that the Liberal government under Justin Trudeau was “nasty” in his first term as president, but that he would prefer to deal with a Liberal government than a Conservative one this time around.

Trudeau stepped down after Minister of Finance Chrystia Freeland announced her resignation from his cabinet in a public letter in mid-December, objecting to Trudeau shuffling her out of her role as finance minister and saying the government needed to be more responsible with spending.

The incident, along with declining support for the Liberals in the polls, led to more public calls within the Liberal caucus for Trudeau’s resignation, which he announced on January 6.

Carney, who started his career in the private sector, worked as a public servant before becoming the governor of the Bank of Canada from 2007 to 2013, and then of the Bank of England from 2013 to 2020.

He later joined the private sector again, serving on the boards of a number of organizations. He also served as the U.N. Special Envoy on Climate Action and Finance. He has said he resigned from all roles before becoming a candidate in the Liberal leadership race in January.

Carney described his meeting with Trump as “constructive.”

“I wouldn’t have expected white smoke coming out of this meeting,” he told reporters during a press conference at the Canadian Embassy in Washington.

“We have a lot more work to do.”

Carney also said that during the private meeting, he asked Trump to stop calling Canada the 51st state.

Omid Ghoreishi and Noe Chartier contributed to this report.