Canadian Dollar Rises After Trump Says Carney Is Eager to Strike a Deal

New Era in U.S.-Canada Relations? Trump Predicts “Great Relationship” With Incoming Canadian Leader

U.S. President Donald Trump confirmed Wednesday that newly elected Canadian Prime Minister Mark Carney is expected to visit the White House within the next week, signaling a potential shift in tone between the two nations after years of cross-border tension.

Trump Hints at Deal-Making with Carney

Speaking during a cabinet meeting, Trump told reporters that Carney initiated a phone call on Tuesday to discuss the path forward between Canada and the United States.

“I think we’re going to have a great relationship. He called me up yesterday. He said, ‘Let’s make a deal,’” Trump said, characteristically upbeat about the prospect of renewed negotiations.

His remarks had an immediate market impact. The Canadian dollar, commonly referred to as the loonie, gained strength against the U.S. dollar, briefly trading at $1.3777.

Trade Wars and Political Rhetoric: A Charged Backdrop

Carney’s rise to power comes on the heels of a deeply polarized election, shaped in large part by Trump’s tariffs and his repeated suggestions that Canada could become the 51st U.S. state — statements widely seen in Canada as dismissive of its sovereignty.

During the campaign, Carney described U.S. trade threats as “a betrayal,” positioning himself as the candidate best equipped to defend Canadian interests against U.S. economic nationalism. Trump was asked to respond to that criticism and acknowledged that neither Carney nor his opponent, Conservative Leader Pierre Poilievre, were fans of his leadership.

“And it was the one who hated Trump, I think, the least that won. I actually think the Conservative hated me much more than the so-called Liberal,” Trump said, adding that Carney “couldn’t have been nicer” during their phone conversation.

Strategic Reset: Carney’s Plan to Rebalance Canada’s Global Trade Strategy

Carney’s victory surprised many, given that polls had previously shown Poilievre in the lead. But Carney’s firm stance against U.S. overreach — coupled with a promise that Canada could win the trade war rather than just endure it — resonated with voters.

Now in office, Carney is outlining a broad plan to fortify Canada’s economic independence and global position. Among his priorities:

Breaking Down Barriers Within Canada

One of Carney’s major domestic goals is to dismantle interprovincial trade barriers — internal rules that restrict the flow of goods and services within Canada’s own borders. This move aims to create a more unified national market.

Building and Rebuilding: Infrastructure and Housing

He also pledges to accelerate housing construction to tackle affordability issues, while modernizing Canada’s energy infrastructure to support long-term economic stability.

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Diversifying Global Partnerships

Perhaps most ambitiously, Carney aims to reduce Canada’s overwhelming reliance on the U.S. market by strengthening trade and diplomatic relationships in Europe and Asia. These efforts would include new trade agreements, increased investment in export-ready industries, and diplomatic outreach to multilateral organizations.

Looking Ahead: High-Stakes Diplomacy at the White House

Carney’s upcoming White House visit will mark the first official meeting between the two leaders since his election. For Trump, it’s a chance to rebuild a relationship that soured during his presidency. For Carney, it will be a test of whether his assertive, sovereignty-focused platform can coexist with Trump’s “America First” worldview.