Key Points

The Prime Minister said on Thursday in a press conference that Trump's office reached out to him Wednesday night to schedule a call.

If it takes place, it will be the first between the two leaders, Xinhua news agency reported.

Carney, after chairing a meeting of the Cabinet Committee on Canada-US Relations and National Security, said Canada will respond to the US auto tariffs with retaliatory trade actions.

The response will "have maximum impacts in the US" and minimum impacts in Canada, said Carney, adding that nothing is off the table to defend Canada and its workers against the US tariffs.

"The old relationship we had with the US based on deepening integration of our economies and tight security and military cooperation is over," said Carney, vowing to reject any attempts to weaken Canada.

Carney announced on Wednesday a "strategic response fund," which is valued at 2 billion Canadian dollars ($1.4 billion), to bolster the country's auto industry.

Trump announced plans on Wednesday for a 25-per cent tariff on all vehicles not made in the US as of April 2.

Trump's planned 25 per cent levy on vehicle imports to the US is to come into force next week and could be devastating for a Canadian auto industry that supports an estimated 500,000 jobs.

After Trump's announcement, Carney paused his campaign ahead of Canada's April 28 election to return to Ottawa for a meeting of Cabinet members working on tactics in the trade war with the US.

He called Trump's auto tariffs "unjustified," and said they were in breach of existing trade deals between the countries.

He also warned Canadians that Trump had permanently altered relations with the US and that, regardless of any future trade deals, there would be "no turning back".

"The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over," Carney said.

He said Canada would retaliate against the auto tariffs.

"Our response to these latest tariffs is to fight, is to protect, is to build," Carney added.

"We will fight the US tariffs with retaliatory trade actions of our own that will have maximum impact in the United States and minimum impacts here in Canada," he added.

Carney replaced Justin Trudeau as Prime Minister on March 14.

Typically, a new Canadian leader makes a phone call with the US president a priority immediately after taking office but Trump and Carney have not spoken.

Carney has also said that while he is willing to talk to Trump, he will not participate in substantive trade negotiations with Washington until the President shows Canada "respect," particularly by ending his repeated annexation threats.

"For me, there are two conditions, not necessarily for a call, but a negotiation with the United States. First Respect, respect for our sovereignty as a country... apparently it's a lot for him," Carney said.

"There has to be comprehensive discussion between the two of us, including with respect to our economy and our security," he added.

- IANS