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Carney says Trump's tariffs are raising costs for American families — as the U.S. Embassy accuses Canadians of election interference

"U.S. tariffs have upended a trade bargain that's existed for decades," the prime minister said as Ottawa unveiled a $6.2-billion plan to shield manufacturing. Carney and Doug Ford both rejected the interference allegation.

Published: October 22, 2026 · Updated: October 22, 2026 · 2 min read

Carney says Trump's tariffs are raising costs for American families — as the U.S. Embassy accuses Canadians of election interference
Illustration generated with AI for Serious Pick Illustration generated with AI for Serious Pick

TORONTO — Prime Minister Mark Carney said Wednesday that U.S. President Donald Trump's tariffs have driven up costs for American families and upended a decades-old trade relationship, as he unveiled a multibillion-dollar plan to shield Canada's manufacturing heartland from the trade war, the Associated Press reported.

"U.S. tariffs have upended a trade bargain that's existed for decades," Carney said. "They've raised costs for American families while putting Ontario workers and businesses at a disadvantage and under a cloud of uncertainty." Carney said an integrated North American auto industry would benefit both countries but acknowledged it may no longer be a priority for Washington. "Their approach has changed," he said. "So must ours."

The announcement — described as a $6.2-billion plan to protect manufacturing — came days after Carney and Ontario Premier Doug Ford unveiled an $8.7-billion package for Ontario steel, autos and critical minerals.

A call with Trump — and an unusual accusation

Carney also said he spoke with Trump for "quite some time" about issues including trade, Iran and other Middle East developments; they had discussed Ukraine days earlier. He gave no indication of a breakthrough but said Canada remains ready to negotiate. Trade negotiations collapsed in August after the countries appeared close to a deal; Trump subsequently imposed 50 per cent tariffs on about $20 billion in Canadian goods, prompting Canadian retaliation.

At the same time, the U.S. Embassy in Canada accused Canadian politicians of seeking to influence American politics ahead of next month's midterm elections. Carney and Ford rejected the suggestion of improper interference. McGill political scientist Daniel Béland told TBS News the items in the embassy's fact sheet were "not genuine examples of foreign interference," calling the idea that Canada could significantly alter the midterm outcome "absurd," and warning the accusation could pave the way for "Blame Canada" rhetoric after the results are in.

Trump has openly said he wants automakers to move production from Canada to the United States, threatening an industry integrated across the border for decades. Carney said Canadian automotive exports to the U.S. had declined by more than 10 per cent, while U.S. exports to Canada had fallen by more than 20 per cent. "Tariffs make both our industries weaker and reduce choice for our families," he said.

Sources

Mark Carneytrade wartariffsDonald Trumpauto industry

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