Trump and Carney in Direct Contact Over Tariffs, Minister Confirms

Industry Minister Mélanie Joly has confirmed reports that Prime Minister Mark Carney and U.S. President Donald Trump are in direct contact over trade and security issues.

“We are in a trade war and it’s normal that at the same time that the trade war is taking place, there are also diplomatic negotiations, and that therefore, Prime Minister Carney and President Trump talk to each other,” Joly told reporters on June 5.

She refused to provide more details, saying the government won’t “negotiate in public.”

“But one thing is certain, we must be able to do two things: manage the current crisis and at the same time continue diplomatic talk,” Joly said.

Trump doubled tariffs on steel and aluminum this week from 25 percent to 50 percent. Carney said on June 4 that his government is still pondering its response to the move, while noting that his government is in discussion with the Americans.

“We will take some time—not much, some time—because we are in intensive discussions right now with the Americans on our trading relationship,” Carney said.

The revelation about Trump-Carney direct discussions was made earlier by U.S. Ambassador to Canada Pete Hoekstra in an interview with The Globe and Mail published on June 5. Hoekstra said the two leaders are “in communications regularly” over issues involving defence spending, energy, border security, steel and aluminum, and fentanyl smuggling.

The ambassador added that the United States is looking for support from allies, including Canada, in the face of China.

“The President has made it very, very clear. The No. 1 challenge to America’s security, to its safety, and prosperity is China,” Hoekstra said.

“We’re looking for, for people who will confront the challenges with China with us.”

Ontario Premier Doug Ford also said on June 5 that he is aware that the two leaders are in “deep, deep discussions” on trade issues.

Ford said he has told Carney that he should try to get to an agreement with the U.S. president to drop the tariffs on Canada. He said failing that, Canada should “come out guns a-blazing” and match the hiked-up tariffs on aluminum and steel with increased retaliatory tariffs.

Trump will be attending the G7 meeting in Canada held in Kananaskis, Alta., from June 15 to 17.

Canadian officials have been signalling that they’re ready to renegotiate the free-trade agreement between the two countries in light of the tariffs.

The U.S. president has imposed different rounds of tariffs on Canada and other countries. These include tariffs over concerns about illegal migration and fentanyl trafficking via the Canada-U.S. border, tariffs on all steel and aluminum imports, and on auto parts. Products covered under the United States-Mexico-Canada Agreement have been exempted from the tariffs.

Reuters and The Canadian Press contributed to this report.