U.S. President Donald Trump and Canadian Prime Minister Mark Carney had their first official phone conversation on March 28, 2025, discussing trade issues between the two nations. Both leaders described the call as productive, signaling efforts to ease tensions following recent tariff announcements.

The relationship between the two countries has been strained due to the U.S. decision to impose a 25% tariff on Canadian steel, aluminum, and automobile imports, set to take effect on April 2. In response, Canada announced retaliatory tariffs to protect its industries and workers.

During the call, Trump and Carney agreed to begin negotiations on a new economic and security framework after Canada’s federal election on April 28. Trump expressed confidence in future cooperation, while Carney emphasized Canada’s commitment to defending its economic interests. He also stressed the importance of reducing Canada’s reliance on the U.S. market.

The trade dispute has had political effects in Canada, with a surge in support for the ruling Liberal Party due to growing nationalist sentiment. The upcoming federal election may shape the direction of Canada’s trade policy and relations with the U.S.

Despite agreeing to negotiations, both nations remain firm on their tariff measures, indicating that economic tensions could continue in the short term. The outcome of Canada’s election will likely play a key role in determining the future of U.S.-Canada trade relations.