Berliner Boersenzeitung - Trump, Canada PM ease tensions with 'productive' call

Trump added that the two had agreed to meet soon after Canada's April 28 general election in which Carney -- who took office two weeks ago -- has made standing up to the US president the focus of his campaign.

"I just finished speaking with Prime Minister Mark Carney, of Canada. It was an extremely productive call, we agree on many things," Trump said on his Truth Social network.

Trump said they would be "meeting immediately after Canada’s upcoming Election to work on elements of Politics, Business, and all other factors, that will end up being great for both the United States of America and Canada."

Typically, a new Canadian leader makes a phone call with the US president an immediate priority but this was Trump and Carney's first contact since the Canadian was sworn in on March 14.

Trump's glowing post was a dramatic change in tone from recent rhetoric between Washington and Ottawa, who are NATO allies and long-standing economic partners.

The US president has sparked fury in Canada by repeatedly insisting that it should become the 51st US state and by slapping or threatening tariffs on the country.

But his post on Thursday was notable for its diplomacy, as the US president gave Carney his official title of prime minister and made no reference to his annexation drive.

In contrast, Trump would often belittle Carney's predecessor Justin Trudeau, with whom he had a long-standing rivalry, as "governor" in a reference to his calls for Canada to join the United States.

Canada's new prime minister has however also stepped up the rhetoric in recent days.

The former central banker -- who was chosen by Canada's centrist Liberal Party to replace Trudeau but has never faced the country's electorate -- has made it clear that Trump's barrage of trade and sovereignty threats will be the focus of his campaign.

- 'Old relationship' -

Just a day before the call, Carney upped the ante by declaring that decades of close cooperation with the United States were now at an end because of Trump.

"The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over," Carney said.

Carney added that he would not participate in substantive trade negotiations with Washington until the president shows Canada "respect," particularly by ending his repeated annexation threats.

The Canadian premier had also vowed to retaliate against Trump's "unjustified" announcement on Wednesday that he would slap steep tariffs on cars.

But while the call may have eased tensions for now, the tariffs issue in particular has not gone away.

Trump's planned 25 percent levy on vehicle imports to the United States is to come into force next week and could be devastating for a Canadian auto industry that supports an estimated 500,000 jobs.

The 78-year-old Republican is also set to impose reciprocal tariffs on all countries that put levies on US exports, and Canada is set to be in the firing line for those too.

After Trump's auto tariffs announcement, Carney paused his election campaign to return to Ottawa for an emergency cabinet meeting to work on tactics in the trade war with the United States.

The US president then warned Canada against working with the European Union to counter upcoming reciprocal tariffs on all imports that he is expected to announce next week.

If they did so, they would face "large scale tariffs, far larger than currently planned," Trump warned.

Meanwhile, Trump's statement that he and Carney would meet immediately after Canada's elections apparently ignored the fact that the race is too close to call.

Trudeau was deeply unpopular when he announced he was stepping down, with Pierre Poilievre's Conservatives seen as election favorites just weeks ago.

Since Trump's threats, the polls have spectacularly narrowed in favor of Carney's Liberals, who hold a minority in parliament.

(A.Lehmann--BBZ)