CANADA AND THE United States will start talks on a new trade deal in early May, Prime Minister Mark Carney has said, warning President Donald Trump’s trade war was already hitting Canada’s labor market.

Carney made the comments in Ottawa after pausing his campaign ahead of Canada’s April 28 election to meet cabinet members working on US relations.

It came at roughly the same time as news landing that General Motors (GM) would pause production at one of its assembly plants where 1,200 people are employed.

When the factory resumes work it will do so minus an estimated 500 staff who will be laid off indefinitely according to Canadian media.

GM said the shutdown was “directly related to responding to market demand and re-balancing inventory” before it would reopen.

Thousands of Canadian auto workers have already had their hours cut due to the tariffs dispute.

This statement from Mark Carney came just as we were getting news about the shutdown of the GM CAMI electric van assembly plant in Ingersoll, ON. It’s the second assembly plant shutdown after Stellantis temporary closure in Windsor last week. https://t.co/IGwXjh2jXl

— Judy Trinh (@judyatrinh) April 11, 2025

The leader of the opposition’s Conservative Party, Pierre Poilievre, has offered support to the workers and hit out at his ally in the White House for his tariff war.

“President Trump is betraying America’s closest friend and attacking our economy,” Poilievre said.

“We must strengthen our economy and end our reliance on the United States.”

Carney’s Liberals lead Poilievre’s party by 6 points according to some of the latest polling.

I am incredibly saddened by the layoffs at the GM CAMI Assembly plant in Ingersoll. This morning, I spoke with Unifor Local 88 GM Plant Chairperson Mike Van Boekel and expressed my commitment to protect Canadian auto workers.

We will keep them working, so they can keep their…

— Pierre Poilievre (@PierrePoilievre) April 11, 2025

In his one phone call with Trump since taking over as prime minister on March 14, Carney and the US president agreed Washington and Ottawa would discuss future trade relations after the election.

Carney today confirmed those talks would begin within weeks.

He said he was working to ensure the next Canadian government “will be in the best possible position for negotiations with the United States, which, as the president and I have agreed, will begin from the start of May.”

Carney added that Friday’s meeting addressed reaction to the escalating global trade war, with China saying Friday would it raise its tariffs on US goods to 125 percent — almost matching the staggering 145 percent level imposed on Chinese goods coming into America.

Carney warned the trade conflict was leading to “tightening in financial conditions, the initial signs of slowing in the global economy” and negative impacts “in the Canadian labor market.”

Canadian exports in the auto sector, steel, aluminum and select other goods are currently subject to US tariffs.

Canada, America’s largest trading partner, has retaliated with levies on select US products.

Current polls indicate Carney’s Liberal Party is on track to win the upcoming election, but the outlook could shift in the campaign’s final weeks.

The opposition Conservatives, led by Pierre Poilievre, insist voters will ultimately recoil at the prospect of a fourth consecutive Liberal government due to frustration with living costs that soared during former prime minister Justin Trudeau’s decade in power.

With reporting by – © AFP2025