Carney says Trump’s tariffs hurt Americans as US alleges Canadian interference

TORONTO (AP) — Canadian Prime Minister Mark Carney said Wednesday 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.

Carney also said he spoke with 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. Carney and Ontario Premier Doug Ford rejected suggestions of improper interference.

Trump has openly said he wants automakers to move production from Canada to the United States, threatening an industry deeply integrated across the border for decades.

“U.S. tariffs have upended a trade bargain that’s existed for decades,” Carney said. “They’ve raised costs for American families while putting Ontario workers and businesses at a disadvantage and under a cloud of uncertainty.”

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.”

Carney said his conversation with Trump covered Iran and other Middle East developments. They discussed Ukraine days earlier and “did address some of the issues around trade” Wednesday. He gave no indication of a breakthrough but said Canada remains ready to negotiate.

Trade negotiations collapsed in August after the countries appeared close to a deal. Trump subsequently imposed 50% tariffs on about $20 billion in Canadian goods, prompting Canadian retaliation.

“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 fueled a surge in Canadian nationalism. 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.

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 CA$5.2 billion ($3.7 billion) over five years for steelmakers and CA$2.5 billion ($1.8 billion) for automakers, including CA$1.5 billion ($1.1 billion) from Ottawa.

It also includes up to CA$1 billion ($711 million) in federal funding, matching Ontario’s commitment, for roads to northern Ontario’s mineral-rich Ring of Fire. Critical minerals are essential to U.S. auto manufacturing, batteries and defense industries, and the United States is Canada’s largest market for them.

The embassy singled out Industry Minister Mélanie Joly for discussing retaliatory tariffs targeting Republican states and Ford for airing a U.S. advertisement featuring former President Ronald Reagan criticizing tariffs. Trump abruptly canceled trade talks with Canada after the ad aired during the World Series in October 2025. The embassy did not establish that either amounted to improper election interference.

The embassy also cited Canadians charged with illegally voting in U.S. elections dating back to 2012, but provided no evidence linking those cases to the Canadian government.

The embassy’s accusations come amid widespread criticism of U.S. Ambassador Pete Hoekstra in Canada, where more than 275,000 people have signed a parliamentary petition calling for his removal.

Carney said the United States initiated the trade war and Canada was protecting its economy. Ford said he had “no interest at all” in interfering in American elections.

Carney said Canadian auto exports to the U.S. 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,” Carney said.