Canadian Prime Minister Mark Carney said Tuesday that he and President Donald Trump have agreed to accelerate trade negotiations after the U.S. announced sweeping 50% tariffs on most Canadian goods, a move that threatens to plunge the already strained relationship between the two neighbors into deeper uncertainty. Speaking in Ottawa, Carney said he spoke with Trump by phone Tuesday morning and that both leaders committed to intensifying talks over the coming weeks. The tariffs, unveiled Monday, are set to take effect in 30 days and were prompted by what Trump described as Canada’s unfair discrimination against American autos, alcohol, and dairy products.

The new duties would apply broadly but would spare energy products, potash, fish, and critical minerals. Notably, they would also cover goods previously shielded from import taxes under the United States-Mexico-Canada Agreement, the 2020 trade pact that the U.S. declined to renew. That decision has triggered a fresh round of negotiations among the three nations that could stretch on for years. Economists at the Bank of Montreal estimate the tariffs would affect roughly $19.8 billion U.S. worth of annual Canadian exports, or about 5% of total shipments south of the border, with chemicals, plastics, electronics, and industrial equipment bearing much of the brunt.

Carney vowed that Canada would do everything necessary to protect its workers, farmers, and broader economy, framing the moment as an opportunity to make the country stronger and more self-reliant. He planned to meet virtually later Tuesday with provincial premiers, several of whom were sharply critical of Trump’s approach. British Columbia Premier David Eby said there was no chance American alcohol would return to liquor store shelves in his province and expressed sympathy for Americans, saying if they cannot be friends with Canada, they likely have few friends anywhere. Ontario Premier Doug Ford took a more combative stance, urging Ottawa to match Trump tariff for tariff rather than constantly playing defense.

Trump told reporters in the Oval Office on Tuesday that he loves the people of Canada but insisted the country relies on the United States for its survival. He also clarified that these latest levies are separate from additional threats he has made regarding wildfire smoke drifting across the border, repeating his assertion that Canada mismanages its forests. For now, both sides appear braced for a prolonged standoff even as they commit to talking more frequently, leaving businesses and consumers on both sides of the border watching closely for any sign of progress or further escalation.