Canadian Prime Minister Mark Carney is set to meet US President Donald Trump in the Oval Office on 6 May 2025, in a diplomatic showdown aimed at defusing a bitter trade war that has strained the historic alliance between the two nations, according to AP News.
Carney, who secured a surprise election victory last month by vowing to resist Trump’s aggressive policies, faces the challenge of balancing domestic political expectations with the need to stabilise economic ties.
Trump’s repeated threats to seize Canada as the “51st state” and his imposition of steep tariffs—including 25% duties on steel, aluminium, and automotive imports—have galvanised Canadian voters and propelled Carney’s Liberal Party to power.
The president’s rhetoric, dismissing the US-Canada border as an “artificial line,” has deepened resentment, with Carney declaring the era of unquestioned integration “over” and pledging to “stand up” to Trump’s demands.
The meeting comes amid retaliatory measures from Ottawa, including tariffs on US goods, which have exacerbated economic pain on both sides of the border. General Motors estimates Trump’s tariffs will cost it up to 5 billion in 2025, while Canadian businesses, from energy exporters to small manufacturers, face collapsing revenues and supply chain disruptions.
Trump targeted Canada’s auto industry, a sector deeply integrated with US supply chains, accusing it of “feeding off America.” Despite this, 60% of US crude oil imports and 85% of electricity imports originate from Canada, underscoring mutual dependency.
The US leader also lambasted Canada’s defence budget, which sits at 1.37% of GDP—below NATO’s 2% target—claiming the US “subsidises” its security. This ignores decades of joint military cooperation, including NORAD and Five Eyes intelligence-sharing.
The bilateral trade relationship, worth $2.7 billion daily, is at a crossroads. Canada remains the largest export market for 36 US states, while the US absorbs 77% of Canadian exports. Trump’s tariffs, however, pushed Canada toward recession, with retaliatory measures hitting US farmers and manufacturers.
Meanwhile, Canada has tightened foreign investment rules to shield businesses from predatory takeovers amid the trade war, signalling a pivot toward economic sovereignty.
Carney’s defiance resonates with voters, but a misstep in talks could provoke further escalation. Trump’s Commerce Secretary, Howard Lutnick, has dismissed Canada as a “socialist regime,” reflecting the administration’s combative stance. Experts warn that failure to secure concessions risks emboldening Trump’s rhetoric, which White House aides insist he views as a “priority.”
The outcome may also influence global leaders navigating Trump’s “America First” agenda. Australia’s recent election saw a similar backlash against US tariffs, suggesting Carney’s approach could become a template for allies.
