August 22, 2025

On August 21, Canadian Prime Minister Mark Carney and US President Donald Trump talked over the phone in what Ottawa called a "productive and wide-ranging" conversation. Their chat covered lots of ground – from heated trade fights to border security and even peace efforts in Ukraine and Europe. Carney told X (formerly Twitter) that the main goal was to build "a new economic and security relationship" between Canada and the US, while backing peace in Europe. He also shared that both leaders agreed to talk again soon. The timing was spicy! Just weeks ago, Trump slapped a 35 percent tariff on some Canadian imports that do not follow the US-Mexico-Canada Agreement (USMCA) rules. The White House pointed out that goods meeting USMCA rules avoid these tariffs. But these new and existing tariffs hit important Canadian sectors like steel, aluminum, copper, and cars hard. Canada fired back with countermeasures, including blocking US alcohol sales. The hit is real – Quebec's liquor agency, SAQ, revealed it might have to destroy $300,000 worth of US alcohol left unsold after a ban lasted months. Manitoba and Nova Scotia took similar stands. Even the US Ambassador to Canada, Pete Hoekstra, admitted last month that things got tense, saying, "there are reasons why the president and some of his team referred to Canada as being mean and nasty to deal with, because of some of those steps." While Carney spoke with Trump, Canadian Foreign Minister Anita Anand was in Washington meeting US Secretary of State Marco Rubio. They talked about ending Russia's war in Ukraine, Haiti's growing security problems, and the tough situation in Gaza. The State Department noted their concern about "Hamas's obstruction of peace." Later, Anand joined other foreign ministers from Europe, Australia, Japan, and the UK in condemning Israel’s approval of a new settlement project in the occupied West Bank. They warned this move could "make a two-state solution impossible." This important high-level exchange is the biggest between Carney and Trump since the tariffs began, but no major deal has come out yet. Canadian officials say they are working hard to protect key industries from tariffs while responding to US demands on border control, stopping fentanyl trafficking, and access to critical Canadian minerals. So, the Canada-US talks are on, with both sides trying to find a way through the stormy seas of tariffs and security, aiming for smoother waters ahead.

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Tags: Canada-us talks, Mark carney, Donald trump, Trade tariffs, Ukraine peace, Border security,