Tariffs: 1) (Updated) Canada, U.S. to negotiate new economic, security relationship after election: Carney; 2) Trudeau was warned about Trump’s trade plans before phone call: briefing note; 3) Small businesses prefer ‘minor’ adjustments over layoffs to deal with tariffs: poll

1) (Updated) Canada, U.S. to negotiate new economic, security relationship after election: Carney

This composite image shows Prime Minister Mark Carney, left, in Kitchener, Ont. on March 26, 2025 and President Donald Trump, right, in Washington on March 26, 2025. THE CANADIAN PRESS/Frank Gunn/AP – Pool

Courtesy Barrie360.com and Canadian Press

By Dylan Robertson, March 28, 2025

Prime Minister Mark Carney said Canada and the United States will begin comprehensive negotiations for a “new economic and security relationship” immediately after the Canadian election following a Friday morning phone call with U.S. President Donald Trump.

In a statement issued by the Prime Minister’s Office, Carney called the call “constructive” while a social media post from Trump described the discussion as “extremely productive.”

Carney told Trump in the phone call that Canada will be implementing new retaliatory tariffs to protect the Canadian economy and workers next week if the president goes ahead with his plan for “reciprocal” tariffs by increasing U.S. duties to match the tax rates that other countries charge on imports on April 2.

Trump’s social media statement said he and the prime minister agreed on many things, and he would be meeting with Carney immediately after the election to “work on elements of politics, business, and all other factors.”

Carney’s statement said he will be working hard during the election to “earn the right to represent Canada” in the discussions the two countries will have following the vote on April 28.

When asked about Canada’s plan for retaliatory duties later Friday, Trump said he “absolutely” would respond with largescale tariffs but his answer mainly focused on the “very good conversation” he had with Carney.

“We had a very good talk, the prime minister and myself,” Trump said in the Oval Office. “And I think things are going to work out very well between Canada and the United States.”

The call was the first between the two leaders since Carney was sworn in on March 9.

Trump’s response was a shift in tone from his statements on Canada in recent months in which he repeatedly threatened Canada’s sovereignty, insisted Canada would be better off as a U.S. state and referred to former prime minister Justin Trudeau as a “governor.” He also consistent

In his statement Friday Trump referred to Carney as Canada’s prime minister.

Carney’s office said before official discussions begin, Trade Minister Dominic LeBlanc would “intensify” conversations with U.S. Secretary of Commerce Howard Lutnick on concerns during the election.

Carney is scheduled to speak to the media Friday afternoon following a virtual meeting with Canada’s premiers. The Liberal leader has been pulled away from campaigning this week to respond to Trump’s executive order on Wednesday that will slap automobile and auto part imports to the U.S. with a 25 per cent tariff next Thursday.

It’s unclear how Canada will ultimately be impacted by those levies. Ontario Premier Doug Ford has said Lutnick indicated auto tariffs won’t include Canadian-made vehicles with 50 per cent or more American parts. 

A fact sheet provided by the White House said automobiles imported under the Canada-U.S.-Mexico Agreement on trade will only be tariffed on the value of content not made in the United States

Bloc Québécois Leader Yves-François Blanchet welcomed Trump saying it was a productive call, but said he wants clarity on issues affecting Quebec in trade disputes, including supply management, softwood lumber, culture and aluminum.

— With files from Kelly Geraldine Malone in Washington

2) Trudeau was warned about Trump’s trade plans before phone call: briefing note

Courtesy Barrie360.com and Canadian Press

By Kelly Geraldine Malone, March 26, 2025

Then-prime minister Justin Trudeau went into his first phone call with a newly re-elected Donald Trump aware that the U.S. president likely was looking to reopen the Canada-U.S.-Mexico Agreement — just a few weeks before he first threatened devastating economy-wide tariffs.

A briefing note prepared ahead of the phone conversation between Trudeau and Trump on Nov. 6 of last year said the president was unlikely to wait for a formal 2026 review of the continental trade pact, also called CUSMA. Canada’s preference would be to keep the review as “narrow and targeted as possible,” the note said.

“However, Canadian officials are preparing for a range of potential scenarios in anticipation of a party seeking to revisit some CUSMA outcomes, or even the entire agreement,” the note said.

The partly redacted briefing note, obtained by The Canadian Press through the Access to Information Act, offers insight into the information provided to Trudeau before his call with the incoming president.

The note pitched talking points for Trudeau and suggested he congratulate Trump on his “historic election win” and praise the Republican leader’s “amazing campaign.”

It suggested that Trudeau tell Trump he was looking forward to working together on trade and economic issues, which included CUSMA, protecting pipelines and transmission lines and strengthening supply chains to “reduce dependence on hostile states.”

The briefing note also said “economic security will be a front-burner issue for a Republican Administration.”

“It is an issue that transcends economic policy and includes national security,” the note said.

A readout from the Prime Minister’s Office following the November phone call said Trudeau and Trump discussed “the enduring and successful partnership between Canada and the United States.” The readout said they also talked about “shared interest in secure and reliable supply chains and addressing unfair trading practices in the global economy.”

But Canada has been in Trump’s crosshairs ever since. The president first threatened to impose steep and sweeping tariffs on Canada on Nov. 25, linking the duties to the flow of fentanyl across the border.

U.S. government data shows the volume of fentanyl crossing the northern border is minuscule. The Annual Threat Assessment report, released Tuesday, does not mention Canada in its section about illicit drugs and fentanyl.

Trump and Trudeau subsequently had multiple additional conversations and the former prime minister travelled to the president’s Mar-a-Lago resort in Florida late last year in an effort to prevent the tariffs.

Canada boosted border enforcement but was ultimately hit with 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy, earlier this month. Those duties were partly paused days after. 

The president also moved ahead with 25 per cent tariffs on all steel and aluminum imports into the U.S., including from Canada, the following week.

Tulsi Gabbard, the U.S. director of national intelligence, was asked about fentanyl and Canada during a Senate intelligence committee hearing Tuesday. She said Mexico is the most extreme fentanyl threat and she didn’t have numbers about Canada.

Trump has repeatedly complained about trade deficits and has threatened to use “economic force” to make Canada a U.S. state. Canadian officials have said the devastating duties are meant to destabilize the country economically to make it easier to annex.

Experts have said levies against Canada and Mexico are being used to rattle both countries ahead of the trilateral trade pact’s mandatory review. The president’s inconsistent and ongoing tariff threats are reminiscent of the CUSMA negotiations during the first Trump administration.

Trump floated the idea of a 25 per cent tariff on the Canadian auto sector during negotiations in 2018, but it was never implemented. But he did use his national security powers to impose a 25 per cent tariff on steel and a 10 per cent tariff on aluminum imports.

Nearly a year later, Canada and Mexico were able to negotiate exemptions and the new trilateral trade deal was signed to replace the North American Free Trade Agreement.

3) Small businesses prefer ‘minor’ adjustments over layoffs to deal with tariffs: poll

Courtesy Barrie360.com and Canadian Press

By Sammy Hudes, March 25 2025

Small and medium business leaders say they could have to make minor adjustments to their operations in the short term to cope with widespread U.S. tariffs on Canadian goods, but more drastic measures may be needed later on.

Companies say they prefer measures such as reduced hours or hiring freezes over significant layoffs if they are forced to make changes due to the 25 per cent levy, according to a poll of 50 small and medium enterprise leaders across Canada.

“However, many also acknowledged that these measures could only be sustained for six to 12 months before more significant workforce reductions would become necessary,” said a report by World Trade Centre Toronto, the trade services arm of the Toronto Region Board of Trade.

“This creates a potential ‘delayed impact’ scenario where initial employment statistics might suggest minimal effects, only to see more substantial job losses emerge over time if tariff conditions persist.”

U.S. President Donald Trump’s blanket 25 per cent tariffs on imports from Canada, with a lower 10 per cent rate for energy products, took effect March 4.

Two days later, Trump paused the levy’s application to goods and services compliant with the United States-Mexico-Canada Agreement until April 2.

The report said industries with high fixed costs and limited ability to implement partial measures may face earlier pressure to make more “dramatic” workforce adjustments.

It also noted the toll of tariffs on small or medium businesses could vary significantly by region, based on the concentration of U.S.-dependent businesses in different areas.

Canadian small and medium businesses derive an average of 31.1 per cent of their revenue from U.S. sales, according to the survey, which found large disparities in that data among respondents.

While some businesses have little or no U.S. market dependence, 18 per cent said they rely on the U.S. for more than three quarters of their revenue.

For the latter group, the tariff threat “represents an existential challenge requiring immediate and comprehensive strategic response,” the board said.

“These businesses face potential revenue impacts that could threaten their very viability if not addressed effectively.”

The report said 63 per cent of businesses surveyed anticipate cutting or delaying investments in research and development if tariffs significantly affect their revenue streams.

It called that a “concerning potential for long-term competitive erosion,” as research and development investments typically drive market competitiveness three to five years into the future.

As federal and provincial governments continue to navigate tariffs and negotiate with their American counterparts, the board recommended policymakers focus on priorities such as trade diversification, diplomatic engagement and providing innovation incentives.

Meanwhile, it said businesses should prioritize alternative market entry strategies, supply chain flexibility and operational efficiency improvements