US President Donald Trump began his first talks with Canadian Prime Minister Mark Carney and vowed to bring up "tough points" that are dividing the two countries since Trump imposed tariffs.
Their meeting on Tuesday started with smiles and a handshake despite Trump's desire to make Canada the 51st US state, a prospect that has chilled bilateral relations. The subject quickly came up as they took questions from reporters.
"We're not going to be discussing that unless somebody wants to discuss it," Trump said. "It would really be a wonderful marriage."
Carney put down the idea firmly.
"It's not for sale, it won't be for sale - ever," he told Trump in the Oval Office.
"Never say never, never say never," Trump said.
Trump claims there would be no tariffs, and the taxes would go down if Canada merges with the US.
Trump, whose tariff policy has rattled world markets, said he and Carney would discuss "tough points," an allusion to the president's belief that the United States can do without Canadian products.
"Regardless of anything, we're going to be friends with Canada," he said.
Carney's Liberal Party won the April 28 election on promises to tackle Trump and create a new bilateral economic and security relationship with the United States.
Shortly before Carney arrived, Trump posted a message on social media.
"I very much want to work with him, but cannot understand one simple TRUTH — Why is America subsidising Canada by $200 Billion Dollars a year, in addition to giving them FREE Military Protection, and many other things? We don’t need their Cars, we don’t need their Energy, we don’t need their Lumber, we don’t need ANYTHING they have, other than their friendship, which hopefully we will always maintain. They, on the other hand, need EVERYTHING from us!"
Trade tensions
Trump appeared to be referring to the trade deficit the US has with Canada due mostly to American imports of Canadian oil, although Canada's merchandise trade surplus was $74.25 billion in 2024.
Carney, a 60-year-old ex-central banker with no previous political experience, was elected Liberal leader in March to replace Justin Trudeau, who had a poor relationship with Trump.
Canada is the US' second-largest individual trading partner after Mexico, and the largest export market for US goods. More than $760 billion in goods flowed between the two countries last year.
Ahead of the meeting, the US Commerce Department reported on Tuesday Canada's goods trade surplus with the US narrowed to a five-month low in March, the month when Trump's hefty tariffs on imported steel and aluminium took effect. Canadian exports to the US plunged by $3.7 billion, the second-largest drop on record.
Canadian data showed the drop in US exports was almost compensated by an increase to the rest of the world, as Canadian companies sought new markets.
Trump in March imposed a 25 percent tariff on all steel and aluminium imports and then slapped another 25 percent tariff on cars and parts that did not comply with a North American free trade agreement.
On Sunday, Trump said he would put a 100 percent tariff on all movies produced outside the US, without giving details, in a potential blow to Canada's film industry.
President Trump says he is authorising the relevant government agencies, such as the Department of Commerce, to immediately begin the process of imposing a 100% tariff on all films produced abroad that are then sent into the United States.
