Carney calls for calm as U.S. trade tensions escalate

Prime Minister Mark Carney is urging calm and focus as tensions rise between Canada and the United States over new tariff threats from President Donald Trump.

Speaking to reporters at the ASEAN Summit, Carney said Canada remains ready to resume trade talks with Washington but will not abandon its broader economic agenda. “As I emphasized the other day, the Government of Canada stands ready to build on the progress that we had been making in our negotiations or discussions with our American counterparts,” he said. “We have a consistent focus in those discussions on doing the best deal for Canadian workers and their families.”

Carney’s remarks came amid escalating rhetoric from Trump, who has threatened an additional ten per cent tariff on Canadian goods in response to Ontario government ads quoting former U.S. president Ronald Reagan’s criticism of protectionism.

Trade talks between the two countries were abruptly halted last week.

The prime minister said his government is pursuing a dual strategy — remaining open to renewed discussions with the United States while expanding Canada’s trade footprint elsewhere. “We are capable of doing more than one thing at one time,” Carney said. “We’re in the process of diversifying our trade relationships — the focus of our meetings here in Asia.”

Carney announced that Canada intends to more than double its exports to non-U.S. markets over the next decade — adding up to more than $300 billion in trade.

He said Canada has agreed with ASEAN leaders to conclude a Canada–ASEAN free trade agreement by next year and will also begin bilateral talks with the Philippines on a similar timeline.

Those developments follow Canada’s recently completed trade agreement with Indonesia.

“Building at home, diversifying our trade relationships abroad, and being ready to work with the United States government as and when the time comes,” Carney said. “That’s the plan.”

He added that an upcoming federal budget will include “generational investments” aimed at strengthening Canada’s economy regardless of the state of its trade relationship with the U.S. “In the course of the next few weeks,” he said, “you’ll be seeing an ambitious budget which makes generational investments in Canada.”