OTTAWA – Prime Minister Mark Carney has indicated that there are growing signs of a slowdown in both the global and Canadian economies. His remarks come during a critical period as he temporarily stepped away from the campaign trail to convene a meeting of the Canada-U.S. cabinet committee.

This convening follows a tumultuous week regarding U.S. tariff policy under President Donald Trump, which has left markets in disarray. The volatility in the market is attributed to Trump’s recent escalation of a trade war, only to shift his approach significantly on Wednesday, leaving many observers and economic analysts puzzled.

Despite the changing dynamics, Canadian imports to the United States still face various tariffs, including those on steel, aluminum, automobiles, and levies related to fentanyl. These tariffs pose ongoing challenges to Canadian businesses and the economy at large.

In light of these developments, Carney has instructed his officials to prepare the incoming government for negotiations with the Trump administration. This preparation is crucial as Canada heads toward its federal election scheduled for April 28, 2025. Carney acknowledged the importance of having a robust plan in place to engage with the U.S. leadership after the election concludes.

Moreover, Carney and President Trump reached an agreement late last month to begin discussions regarding a new economic and security deal between the two nations, highlighting the urgent need for diplomatic engagement in the current climate.

As the situation unfolds, the implications of these tariff policies and potential negotiations could profoundly impact sectors of the Canadian economy that rely on trade with the U.S. The evolving relationship between the two countries will be closely monitored, particularly in the aftermath of the federal election.

– With files from Kyle Duggan in Ottawa and Kelly Geraldine Malone in Washington

This report was first published on April 11, 2025, by The Canadian Press.