Carney convenes Canada-U.S. committee, warns tariffs slowing both global and Canadian economies
Prime minister says he left officials instructions to prepare for bilateral trade negotiations in early May
Prime Minister Mark Carney emerged from a meeting with his Canada-U.S. committee in Ottawa on Friday warning the global economy is starting to slow, and saying he's directed officials to prepare for negotiations with the Trump administration next month.
Describing the meeting as "a good, long discussion on several aspects," the Liberal leader said a lot has happened in the last week since U.S. President Donald Trump introduced his tariff policy.
Carney said aside from China's decision to slap counter-tariffs on U.S. goods, there has been "a really marked tightening in financial conditions," and that there are "the initial signs of slowing in the global economy."
"Impacts that we are starting to see, unfortunately, in the Canadian economy, particularly in the Canadian labour market," he said.
Carney announced Thursday in Brampton, Ont., that he would be suspending his campaign and returning to Ottawa to discuss Canada-U.S. relations and national security.
After Carney's March 28 call with Trump, he said the two leaders had agreed to negotiate a comprehensive "new" economic and security relationship should Carney win next month's federal election.
"I made it clear that I will be working very hard over the next month to earn the right to represent Canada in those discussions," Carney said at the time. On Friday, Carney said those discussions would begin in early May.
"We left instructions for officials to ensure that the next government, whichever government Canadians choose, will be in the best possible position for negotiations with the United States," Carney said in Ottawa.
Poilievre touts economic proposals
As part of his three-pronged tariff plan, Trump last week announced huge "reciprocal" tariffs on virtually every country in the world except Canada and Mexico.
The fact that Canada dodged these particular tariffs was seen as somewhat positive, with Carney saying at the time that it was "the best of a series of bad deals."
Watch | Carney returns to Ottawa to discuss U.S. tariffs, financial markets with cabinet:
This week, Trump relented and temporarily dialled back the more onerous tariff rates for 90 days after the stock market tanked amid the trade chaos.
But Trump is still pushing ahead with a "reciprocal" 10 per cent tariff on goods coming from most countries, except Canada and Mexico, which were never hit by these particular tariffs.
Trump and China remain engaged in their own trade war, with U.S. tariffs on Chinese goods now at 145 per cent and China's reciprocal tariffs now at 125 per cent.
Meanwhile, Conservative Leader Pierre Poilievre was in St. Catharines, Ont., Friday unveiling his "Canada First Economic Action Plan" that he says will boost economic growth in Canada by $500 billion over the next five years.
Poilievre used the event as an opportunity to highlight previously announced economic policies such as his plan to rapidly approve natural resource projects, remove the GST from new cars, make housing more affordable, build a national energy corridor and introduce a reinvestment tax credit.
Poilievre said his economic plan will "unlock half a trillion dollars in additional GDP spread over the next five years."
"This is money that will go into the pockets of our workers, this will build our economy back and fortify it against the Americans," he said. "This Canada First economic plan will be like rocket fuel for the Canadian economy."
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