Prime Minister Mark Carney, centre, greets fellow leaders with a handshake during the opening ceremony of the ASEAN summit in Kuala Lumpur, Malaysia, on Sunday, October 26, 2025. (The Canadian Press)
Prime Minister Mark Carney used his speech at the Association of Southeast Asian Nations (ASEAN) summit in Malaysia on Sunday to draw a clear line between Canada’s trade approach and that of U.S. President Donald Trump. Without naming the United States, Carney stressed Canada’s respect for global trade rules and stability.
Canada Promotes Fair Trade
“We value a rules-based system. We respect trade agreements and the rule of law. We value the free exchange of goods, capital and ideas,” Carney told world leaders. His remarks came just hours after Trump threatened to increase tariffs on Canadian imports following a TV ad aired by the Ontario government in U.S. markets.
The ad, which cost about $75 million, featured clips of former U.S. president Ronald Reagan speaking against tariffs. Trump reacted angrily, accusing Canada of running a “fraudulent” campaign during a major sports broadcast and ordered a 10 per cent tariff hike on Canadian goods.
Trade Tensions Resurface
Carney later told reporters that his government would continue working toward progress with Washington despite the setback. “It is the sole responsibility of the government of Canada to have those discussions with the United States, and it’s the best way forward,” he said.
Trump’s threat came after Ontario Premier Doug Ford promised to pull the ad campaign following Carney’s departure for Malaysia. Trade talks between the two countries had already hit several obstacles, though both sides were reportedly close to a deal on sector-specific tariffs earlier this month.
Trump’s move now puts that progress at risk. The U.S. leader, who arrived in Malaysia the same day as Carney, made his comments online while en route to attend a peace agreement signing between Thailand and Cambodia.
Business Leaders Call for Calm
Goldy Hyder, head of the Business Council of Canada, urged both sides to return to the negotiating table. “We’ve got to pull our own act together if we’re going to be able to have an opportunity to make progress,” Hyder said. He added that Canada should prepare for the upcoming renegotiation of the Canada-U.S.-Mexico Agreement (CUSMA) next year and not rely too heavily on the existing terms.
Carney’s Broader Message to Asia
Speaking to ASEAN leaders, Carney warned that global institutions face new challenges from growing “transactional bilateral trade” and power rivalries. He said countries like Canada and those in Southeast Asia must stand together as reliable partners.
Carney reaffirmed Canada’s goal to double non-U.S. exports within ten years and to quadruple defence spending over four years, focusing on cybersecurity and artificial intelligence. He also pointed to Canada’s new trade deal with Indonesia — its first with an ASEAN country — and pledged to reach more bilateral agreements soon.
Carney met with Philippine President Ferdinand Marcos Jr., agreeing to pursue a trade deal by 2026. He also held talks with the leaders of Laos and Vietnam.
The ASEAN summit officially opened Sunday, welcoming Timor-Leste as the bloc’s 11th member.
