Canadian Prime Minister Mark Carney stated that U.S. President Donald Trump “respected Canada’s sovereignty” during their first official call amid ongoing trade tensions. The conversation, which Carney described as “constructive,” comes as the U.S. prepares to impose a 25% tariff on vehicle imports starting April 2—a move that could significantly impact Canada’s auto industry.

Carney and Trump agreed to begin discussions on a new economic and security partnership after Canada’s election on April 28. The call marks a shift in tone, as Trump previously mocked former Prime Minister Justin Trudeau and suggested Canada should become the 51st U.S. state.

The U.S. has already imposed a 25% tariff on Canadian aluminum and steel, while Canada has retaliated with C$60 billion in tariffs on American goods. Carney has warned that the U.S. is “no longer a reliable trading partner” and has pledged strong countermeasures if new tariffs take effect.

Meanwhile, opposition leaders in Canada have criticized the government’s handling of trade relations, with concerns that Carney may make concessions to Trump. Trump has also warned Canada against forming alliances with the EU to counter U.S. tariffs, threatening even stricter trade penalties.