Carney: Canada-U.S. Trade War Continues Despite Diplomatic Exchanges Prime Minister Mark Carney confirms ongoing dialogue with President Trump amid escalating trade tensions, as both countries impose new tariffs and Canada outlines plans to boost domestic manufacturing. Prime Minister Mark Carney revealed on Thursday that he has maintained frequent communication with U.S. President Donald Trump in recent days, despite the escalating trade war between the two nations. The conversation reportedly centered on global affairs, including the conflicts in Ukraine and Iran, as well as the impacts on energy and grain markets.'We can compartmentalize,' Carney stated, emphasizing the importance of distinguishing diplomatic relations from trade disputes. 'I spoke to President Trump recently, just a few days ago, regarding issues in Ukraine and Iran, among others. ' The United States and Canada have recently expanded their trade conflict, with the U.S. implementing a 50% tariff on hundreds of Canadian goods, including high-profile items like toilet paper and salt.In response, Canada has levied its own tariffs on approximately $30 billion worth of U.S. imports, marking a significant escalation in the dispute. Despite the harsh rhetoric and economic sanctions, Carney expressed optimism about the potential for resolution.'Canada is always ready to strike a fair deal,' he said. 'We believe there is still a mutually beneficial agreement to be reached between our two nations. ' Looking ahead, Carney outlined a strategy to mitigate the impact of the trade war. He announced plans to 'build, build here,' indicating a concerted effort to enhance domestic manufacturing capabilities.Additionally, he mentioned the need to diversify Canada's international trading portfolio. The prime minister also addressed the specific issue of the U.S. ban on Canadian aluminum products, which is set to take effect on September 29th.'We are utilizing the time between now and the ban's implementation to allow companies to adjust and prepare,' he explained. Furthermore, Carney shared an ambitious vision for Canada's technological future. He revealed plans to collaborate with Ukraine to develop a fleet of millions of drones within the next two years, combining Ukrainian battlefield expertise with Canadian AI and manufacturing strength. This initiative aims to position Canada as a leader in unmanned vehicle technology.On the diplomatic front, U.S. Ambassador to Canada Pete Hoekstra has called for a de-escalation of the conflict.'It is time to take the tenor down,' Hoekstra urged, suggesting that the focus should return to the shared values and history of the two countries, particularly as they commemorate the anniversary of the 9/11 attacks. While the path to reconciliation appears fraught with challenges, the continued dialogue between the leaders suggests that a resolution is still within the realm of possibility.