TORONTO (AP) — Canadian Prime Minister Mark Carney said Wednesday that tariffs imposed by U.S. President Donald Trump have raised costs for American families and upended decades-old trade relations, as he unveiled a multibillion-dollar plan to protect Canada’s manufacturing heartland from the trade war.
Carney also said he spoke with Trump for “a while” about issues including tradeas the US embassy in Canada accused Canadian politicians of seeking to influence US politics in the run-up to next month’s mid-term elections. Carney and Ontario Premier Doug Ford rejected suggestions of inappropriate interference.
Trump has openly stated that he wants car manufacturers will move their production from Canada to the United States, threatening an industry that has been deeply integrated across the border for decades.
“The U.S. tariffs have upended a trade agreement that has existed for decades,” Carney said. “They have increased costs for American families while disadvantaging Ontario workers and businesses and plunging them into a cloud of uncertainty. »
Carney said an integrated North American auto industry would benefit both countries, but acknowledged it may no longer be a priority for Washington. “Their approach has changed,” he said. “Ours too.”
Carney said the conversation focused on Iran, the Middle East and some trade issues. They had discussed Ukraine a few days earlier. He gave no indication of a breakthrough, but said Canada remained ready to negotiate.
Trade talks collapsed in August after the countries appeared close to a deal. Trump then imposed 50% tariffs on approximately $20 billion in Canadian goods, provoking retaliation from Canada.
Ford: no turning back in Canadian-American relations
“It is 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 will not go back to the way things were.”
Trump’s trade war and repeated threats to make Canada the 51st American state fueled a rise 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.
Billions to protect Canadian industries
Carney and Ford announced an 8.7 billion Canadian dollar ($6.2 billion) plan to support steelmakers, automakers and the development of critical minerals in Ontario, Canada’s manufacturing heartland.
The plan includes C$5.2 billion ($3.7 billion) over five years for steelmakers and C$2.5 billion ($1.8 billion) for automakers, including C$1.5 billion ($1.1 billion) from Ottawa.
This announcement comes as American steelmaker Cleveland-Cliffs announced layoffs at its Hamilton, Ontario plant, highlighting the consequences of the tariffs imposed by Trump on the Canadian manufacturing sector.
US embassy alleges Canadian interference in US politics
Also on Wednesday, the US Embassy issued a information sheet accusing Canadian politicians of seeking to interfere in American elections.
The statement singled out Industry Minister Mélanie Joly for discussing retaliatory measures targeting Republican states, and Ford for airing a U.S. ad 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 also cited 11 Canadians accused of voting illegally in U.S. elections between 2012 and 2026, without linking those cases to the Canadian government.
The administration has launched a government-wide effort to investigate and prosecute non-citizen voters, which election experts and administrators call relatively minor problem. The Justice Department says that since the start of 2026, it has arrested more than 200 people for voting illegally as noncitizens in previous elections, a tiny number compared to the country’s tens of millions of regular voters.
“The material presented in the US embassy ‘fact sheet’ are not real examples of foreign interference and the implicit assumption that Canada could significantly alter the outcome of the midterm elections is absurd,” said Daniel Béland, a political science professor at McGill University in Montreal.
“Accusing Canada of foreign interference before the midterm elections could pave the way for ‘Blame Canada’ rhetoric once the election results are known.”
Carney said Canada was respond to US tariffswhile Ford has denied any interest in interfering in the US election.
Carney said Canadian auto exports to the United States fell more than 10 percent, while U.S. exports to Canada fell more than 20 percent.
“Tariffs weaken both of our industries and reduce choice for our families,” Carney said.
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