Canadian Prime Minister Mark Carney said that U.S. President Donald Trump’s tariffs have driven up costs for American families and upended a decades-old trade relationship as he unveiled a multibillion-dollar plan to shield Canada’s manufacturing heartland from the trade war.
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Mr. Carney on Wednesday (October 22, 2026) also said he spoke with Mr. Trump for “quite some time” about issues including trade, as the U.S. Embassy in Canada accused Canadian politicians of seeking to influence American politics ahead of next month’s midterm elections.
Mr. Carney and Ontario Premier Doug Ford rejected suggestions of improper interference.
Mr. Trump has openly said he wants automakers to move production from Canada to the U.S., threatening an industry deeply integrated across the border for decades.
“US tariffs have upended a trade bargain that’s existed for decades,” Mr. Carney said. “They’ve raised costs for American families while putting Ontario workers and businesses at a disadvantage and under a cloud of uncertainty.”
Mr. Carney said an integrated North American auto industry would benefit both countries but acknowledged that it may no longer be a priority for Washington. “Their approach has changed,” he said. “So must ours.”
Mr. Carney said the conversation covered Iran, the West Asia and some trade issues. They discussed Ukraine days earlier. He did not indicate a breakthrough but said Canada remains ready to negotiate.
Trade negotiations collapsed in August after the countries appeared close to a deal. Mr. Trump subsequently imposed 50% tariffs on about $20 billion in Canadian goods, prompting Canadian retaliation.
Ford: No going back in Canada-U.S. relations
“It’s clear that Canada’s relationship with the United States has changed permanently,” Ford said. “No matter what happens in the midterms, no matter who sits in the White House, we’re not going back to the way things were.”
Trump’s trade war and repeated threats to make Canada the 51st U.S. state have fuelled a surge in Canadian nationalism.
Mr. Carney has made reducing Canada’s dependence on the United States a priority, setting a goal of doubling exports to other markets over the next decade.
Mr. Carney and Ford announced the 8.7 billion Canadian dollar ($6.2 billion) plan to support steelmakers, automakers and critical mineral development in Ontario, Canada’s manufacturing heartland.
The plan includes 5.2 billion Canadian dollars ($3.7 billion) over five years for steelmakers and 2.5 billion Canadian dollars ($1.8 billion) for automakers, including 1.5 billion Canadian dollar ($1.1 billion) from Ottawa.
The announcement comes as U.S.-owned steelmaker Cleveland-Cliffs announced layoffs at its Hamilton, Ontario, plant, highlighting the toll of Trump’s tariffs on Canadian manufacturing.
U.S. Embassy alleges Canadian interference in American politics
Also Wednesday, the U.S. Embassy issued a fact sheet accusing Canadian politicians of seeking to interfere in American elections.
The statement singled out Industry Minister Melanie Joly for discussing retaliatory tariffs targeting Republican states and Ford for airing a U.S. advertisement featuring former President Ronald Reagan criticising tariffs.
Mr. Trump abruptly cancelled trade talks with Canada after the ad aired during the World Series in October 2025.
The Embassy also cited 11 Canadians charged with illegally voting in U.S. elections between 2012 and 2026, without linking the cases to Canada’s government.
The administration has launched a whole-of-government effort to investigate and prosecute noncitizen voting, something election experts and administrators characterise as a comparatively small issue.
The Department of Justice says that since the start of 2026 it has arrested more than 200 people for illegally voting as noncitizens in past elections, a vanishingly small number compared to the country’s tens of millions of regular voters.
“The items featured in the US embassy’s fact sheet are not genuine examples of foreign interference and the implicit assumption that Canada could significantly alter the outcome of the midterms is absurd,” said Daniel Béland, a political science professor at McGill University in Montreal.
“Accusing Canada of foreign interference ahead of the midterms could pave the way to Blame Canada’ rhetoric after the electoral results are in.”
Mr. Carney said Canada was responding to US tariffs, while Ford denied any interest in interfering in American elections.
Mr. Carney said Canadian auto exports to the US have fallen more than 10%, while U.S. exports to Canada have dropped more than 20%.
“Tariffs make both our industries weaker and reduce choice for our families,” Mr. Carney said.
Published – October 22, 2026 11:38 am IST
