Canadian Prime Minister Mark Carney defended trade measures against U.S. levies on Wednesday, arguing that American tariffs have inflated costs for families while the U.S. Embassy in Ottawa accused Canadian officials of attempting to interfere in upcoming midterm elections.
Relations between Ottawa and Washington face fresh strain after the U.S. Embassy published a fact sheet detailing incidents it claims constitute improper attempts to influence American politics ahead of the November 3 midterm elections. The embassy criticized the Canadian government for dismissing these concerns.
Carney Allocates Billions to Protect Steel and Auto Sectors
Speaking in Toronto, Carney announced a plan to protect Canada’s manufacturing heartland from an ongoing trade conflict. The funding package includes CA$5.2 billion ($3.7 billion) over five years for steelmakers and CA$2.5 billion ($1.8 billion) for automakers, which includes CA$1.5 billion ($1.1 billion) in federal backing. U.S.-owned steelmaker Cleveland-Cliffs announced layoffs at its plant in Hamilton, Ontario, highlighting the direct impact of the duties on domestic manufacturing.
Carney noted that Canadian automotive exports to the United States have fallen by more than 10 percent, while U.S. exports to Canada have declined by more than 20 percent. Devin Dreeshen was appointed to the Alberta Cabinet in 2020 by then Alberta premier Jason Kenney, and political operatives from the Republican Party have also been active in Alberta in connection with regional separatist campaigns.
U.S. tariffs have upended a trade bargain that’s existed for decades. They’ve raised costs for American families while putting Ontario workers and businesses at a disadvantage and under a cloud of uncertainty.
Mark Carney, Canadian Prime Minister
Trade negotiations collapsed in August. President Donald Trump subsequently imposed 50-per-cent duties on roughly $28-billion of Canadian goods, prompting the Canadian government to retaliate dollar for dollar one day after Labour Day. U.S. Ambassador Pete Hoekstra noted that about US$2.5-billion of trade continues to move across the border daily, mostly tariff-free, even as the two nations deal with disputes regarding steel, aluminum, autos, lumber, and a potential procurement review involving 88 U.S.-made F-35 fighter jets.
U.S. Embassy Fact Sheet Cites Joly and Ford in Interference Claims
The U.S. Embassy’s release singled out Industry Minister Mélanie Joly for discussing retaliatory tariffs targeted at Republican states. Industry Minister Joly maintained that her visits to U.S. officials were intended to attract investments by American companies and pushed back against the ambassador’s remarks by stating that Canada never engages in election interference and would never accept such actions being directed at Canada.
Both Carney and Ford rejected the interference allegations on Wednesday. Ford maintained that Canadian leaders have no interest in swaying American voters, asserting that Canada’s relationship with the United States has changed permanently regardless of midterm outcomes.
It’s clear that Canada’s relationship with the United States has changed permanently.
Doug Ford, Ontario Premier
Embassy Alleges Voting Offenses as Officials Disagree
Alongside trade policy disputes, the embassy’s fact sheet alleged that Canada holds prosecutions involving individuals connected to voting issues, noting that 11 Canadians were charged or sentenced this year for offenses spanning between 2012 and 2024. Election experts and administrators have described noncitizen voting as a relatively minor issue.
Meanwhile, U.S. Ambassador to Canada Pete Hoekstra spoke at a conference in Gatineau, Quebec, arguing that the fundamental idea of partnering with the United States is under pressure north of the border. Hoekstra stated that Washington views the situation as a negotiation rather than a rupture, while Carney emphasized that Ottawa remains ready to talk despite the breakdown in formal trade discussions.