Canadian PM Mark Carney and President Trump discuss ‘new economic and security relationship’ amid tariff clash

Canadian Prime Minister Mark Carney and US President Donald Trump spoke Thursday(August 21) in what Ottawa described as a “productive and wide-ranging” conversation, touching on trade disputes, border security, and what both sides are calling the foundation of a “new economic and security relationship.”

According to a statement from the Prime Minister’s Office, the leaders also discussed efforts to secure “long-term peace” in Ukraine and Europe. Carney said on X that the call was focused on building a new economic and security relationship with the United States and supporting peace in Europe, adding that he and Trump agreed to speak again soon.

Tariff fight escalates

The discussion comes against the backdrop of an increasingly bitter trade dispute. In late July, Trump imposed 35 percent duties on Canadian imports that do not meet requirements under the United States-Mexico-Canada Agreement (USMCA). A White House fact sheet emphasized that USMCA-qualifying goods are exempt from the tariff.

The measures add to US tariffs already targeting steel, aluminum, copper, and automobiles, sectors critical to Canadian exports. Ottawa has responded with countermeasures, including restrictions on US alcohol sales.

The fallout is being felt directly by consumers. Quebec’s liquor agency, the SAQ, confirmed this week that it may destroy $300,000 worth of US alcohol after the provincial ban left products unsold for months. Manitoba and Nova Scotia have taken similar steps.

US Ambassador to Canada Pete Hoekstra acknowledged growing frustration in Washington, saying last month that “there are reasons why the president and some of his team referred to Canada as being mean and nasty to deal with, because of some of those steps.”

Anand meets Rubio

While Carney spoke with Trump, Canadian Foreign Minister Anita Anand was in Washington meeting US Secretary of State Marco Rubio. The State Department said the two discussed negotiations to end Russia’s war in Ukraine, Haiti’s worsening security crisis, and ongoing tensions in Gaza, including what it described as “Hamas’s obstruction of peace.”

Later the same day, Anand joined foreign ministers from Europe, Australia, Japan and the United Kingdom in issuing a joint letter condemning Israel’s approval of a new settlement project in the occupied West Bank. The ministers warned the move would “make a two-state solution impossible.”

The outreach marks the highest-profile engagement between Carney and Trump since the US tariffs came into effect, but no breakthrough has been announced. Canadian officials say they are working on ways to shield domestic industries from tariff pressure while addressing American demands on border enforcement, fentanyl trafficking and access to Canadian critical minerals.