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Minister Carney of Canada says that Trump and Carney have direct contact regarding tariffs.

Melanie Joly, Canada's Minister of Industry, said that the Canadian Prime Minister Mark Carney is in direct contact with U.S. president Donald Trump as Ottawa tries to convince Washington to lower tariffs.

She told reporters, "We're in a trade conflict and it is normal that there are diplomatic negotiations going on at the same time as the trade war. That's why Prime Minister Carney, and President Trump, talk to eachother."

The Globe and Mail reported that the U.S. ambassador to Canada had said earlier that the two leaders held secret direct talks in order to develop a framework of a security and trade deal.

This week, Trump doubled tariffs for imports of aluminum and steel to 50%. This move could hurt Canada as it is the biggest seller of metals in the U.S.

Carney stated on Wednesday that Canada is "preparing reprisals" if the negotiations fail.

Pete Hoekstra is the U.S. Ambassador to Canada. He told The Globe that the two sides are "laying out the parameters" of a possible deal. This could include boosting U.S. auto content, improving U.S. accessibility to Canadian critical minerals, and ensuring Canada plays a larger role in the Arctic.

He also said that the talks would include increased spending on defense, energy, border safety, steel, aluminum, and stopping the smuggling fentanyl.

Carney's Office declined to comment.

An official from the U.S. Embassy in Ottawa wrote an email saying that "both the Prime Minister and President, or members of both teams, have publicly acknowledged there are ongoing discussions".

Unifor, Canada's largest private-sector union, called on Carney on Wednesday to take immediate action. (Reporting from David Ljunggren, Ottawa; Anusha Shah, Bengaluru. Editing by Leslie Adler & Sandra Maler.

(source: Reuters)