Canadian Prime Minister Mark Carney stated on Friday that United States President Donald Trump showed respect for Canada's sovereignty in both private and public remarks during a recent phone call. However, Carney expressed concern that Trump’s current economic policies could lead to higher inflation and slower economic growth in the United States.

“Trump respected Canada's sovereignty today, both in his private and public comments,” Carney said, offering measured praise after their discussion. Despite the diplomatic tone, the Canadian leader issued a clear warning about the potential domestic effects of the U.S. president’s trade strategies.

Carney pointed specifically to tariffs on key goods, saying, “Trump did not give any guarantees that he would back down on tariffs on autos, steel, and aluminum.” These measures, which have been a central part of Trump’s economic approach, are viewed by Carney as likely to elevate consumer prices and restrain economic growth in the American market.

Trade tensions between the U.S. and Canada have been a recurring theme under Trump’s presidency, particularly concerning the auto and metals industries. While Carney’s comments acknowledged diplomatic progress, they also emphasized the economic risks associated with protectionist policies.

The Canadian Prime Minister also addressed the future of trilateral trade discussions involving the U.S., Canada, and Mexico. He noted that it remains “unclear” whether new talks will take place. However, he expressed a preference for including Mexico in any future negotiations, signaling continued support for regional trade cooperation.

“We prefer that the Latin American country take part in the discussions,” Carney added, underscoring the importance of maintaining inclusive dialogue within the North American economic framework.

Carney’s remarks reflect a cautious but realistic outlook on the evolving trade relationship with the U.S., balancing acknowledgment of diplomatic progress with concerns over economic policy impacts. As President Trump continues to shape America’s trade agenda, neighboring leaders like Carney remain attentive to how those choices affect the broader North American economy.