Canada and the United States to begin trade talks in May

(Patria) - Canada and the United States will begin negotiations on a new trade agreement in early May, Prime Minister Mark Carney said on Friday, warning that President Donald Trump's trade war is already affecting the Canadian labor market, AFP reported.

Carney said this in Ottawa after pausing his campaign ahead of the April 28 elections in Canada to meet with cabinet members working on relations with the United States.

In one phone call with Trump since taking office as prime minister on March 14, Carney and Trump agreed that Washington and Ottawa would discuss future trade relations after the elections. Carney confirmed on Friday that these talks would begin in a few weeks.

He said he was working to ensure that the next Canadian government "is in the best possible position to negotiate with the United States, which, as the President and I agreed, will begin from the beginning of May".

Carney added that Friday's meeting addressed the response to the escalation of the global trade war, with China saying on Friday that it would raise its tariffs on American goods to 125 percent, almost equal to the 145 percent imposed on Chinese goods coming into America.

Carney warned that the trade conflict is leading to "tightening financial conditions, initial signs of a slowdown in the global economy" and negative impacts "on the Canadian labor market".

Canadian exports in the automotive sector, steel, aluminum, and other goods are currently subject to US tariffs. Thousands of Canadian auto workers have had their working hours reduced.

Canada, the largest US trading partner, has retaliated with tariffs on some American products. Polls show that Carney's Liberal Party is on track to win the upcoming election, but this could change by the end of the campaign. The opposition Conservatives, led by Pierre Poilievre, believe that voters will eventually reject a fourth consecutive Liberal government due to the rising cost of living during the decade in power of former Prime Minister Justin Trudeau.