JAKARTA - US President Donald Trump and Canadian Prime Minister Mark Carney had a phone conversation called both of them productive calls. But PM Carney insists Ottawa will charge a reply rate next week as promised.

The phone call was Trump's first contact since Carney won the leadership of Canada's ruling Liberal Party on March 9.

Carney said Trump's tariff threat was a betrayal of once close economic and security ties.

"It was a very productive phone call, we agreed on many things, and will soon meet after the upcoming Canadian elections to discuss elements of politics, business and all other factors," Trump wrote at Truth Social.

"The work will end well for the United States and Canada," he added.

Trump, who frequently mentions Canada's annexation - called Carney the Canadian prime minister, not the 51st US state governor, a term he often uses to describe former Prime Minister Justin Trudeau.

"The president respects Canada's sovereignty today, both in its personal and public statements," Carney told a news conference in Montreal, saying the phone call was very warm.

Carney on Thursday pledged to change Canada's economy so it doesn't depend on the United States too much.

Trump's tariff announcement is expected to take place on April 2. Ottawa has been explaining for months, they will impose countermeasures.

"I told President Trump that my government will apply retaliatory rates to protect Canadian workers and our economy after the announcement of a new trade action by the United States on April 2", Carney said.

The United States and its northern neighbors have long been close allies and trading partners. But relations quickly deteriorated after Trump took office in January.

Carney said the two leaders agreed to start comprehensive negotiations on new economic and security ties soon after the general election on April 28.

Canada, along with Mexico, is part of a United States-Mexico-Canada free trade deal scheduled to be reviewed next year.

Carney said he didn't know if Mexico would take part in talks about a new security economy relationship.

In addition, he stressed Canada needed to look for new trading partners and said if it won the general election, it would set up a C$5 billion trade diversification fund to help build ports, railroads, inland terminals, airports, and highways.


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