U.S. Embassy Accuses Canadian Officials of Midterm Interference as Carney Reports No Breakthrough in Trump Call

Since trade talks collapsed in August and President Trump imposed 50% tariffs on about $20 billion in Canadian goods, the dispute has moved beyond tariffs. On Wednesday, Oct. 21, the same day Ottawa and Ontario announced a CA$8.7 billion ($6.2 billion) aid package, the U.S. Embassy in Canada accused Canadian politicians of trying to influence next month's American midterm elections.

Canada's two most prominent voices on the issue flatly rejected it.

What the embassy alleges

The embassy issued a fact sheet naming two Canadians. It singled out Industry Minister Mélanie Joly for discussing retaliatory tariffs aimed at Republican states. It also named Ontario Premier Doug Ford for running a U.S. television ad featuring former President Ronald Reagan criticizing tariffs.

That ad has history. It is the one that prompted Trump to walk away from trade talks in October 2025.

Carney and Ford both said nothing improper took place. The embassy's allegation is a claim by the U.S. government. No investigation or formal action has been announced.

The pushback

Outside analysts did not buy the accusation either. "The implicit assumption that Canada could significantly alter the outcome of the midterms is absurd," said Daniel Béland, a political science professor.

The embassy's framing rests on a plain fact: Canadian officials have discussed tariffs that would hit Republican-held states, and a Canadian premier did buy airtime in the American market. Canadian officials do not dispute either. They dispute that it amounts to interference.

Carney and Trump talk, with no deal

Carney said he spoke with Trump for "quite some time" on Wednesday. The call covered Iran, the Middle East and some trade issues. The two had discussed Ukraine days earlier.

Carney gave no indication of a breakthrough. He said Canada remains ready to negotiate.

He used the Toronto announcement to argue that tariffs are costing Americans too. "They've raised costs for American families while putting Ontario workers and businesses at a disadvantage and under a cloud of uncertainty," he said. "Tariffs make both our industries weaker and reduce choice for our families."

The trade figures he cited are one-sided on the surface. Canadian auto exports to the U.S. have fallen more than 10%. U.S. auto exports to Canada have dropped more than 20%, a decline Carney said hurts both sides of the border.

Trump has openly said he wants automakers to move production from Canada to the United States. Carney acknowledged that an integrated North American auto industry "may no longer be a priority for Washington."

"Their approach has changed," Carney said. "So must ours."

Ottawa pivots away from the U.S. market

Carney has set a goal of doubling Canadian exports to non-U.S. markets over the next decade. The aid plan itself includes CA$5.2 billion ($3.7 billion) over five years for steelmakers and CA$2.5 billion ($1.8 billion) for automakers, of which CA$1.5 billion ($1.1 billion) comes from Ottawa. It also supports critical mineral development in Ontario.

The human cost arrived the same day. U.S.-owned steelmaker Cleveland-Cliffs announced layoffs at its Hamilton, Ontario, plant. The sources do not give a headcount.

Ford went further than Carney on where the relationship stands. "It's clear that Canada's relationship with the United States has changed permanently," he said. "No matter what happens in the midterms, no matter who sits in the White House, we're not going back to the way things were."

The surge in Canadian nationalism that Trump's trade war and his repeated talk of making Canada the 51st state have fueled is part of that. Taxpayers on both sides are now funding the fallout: Canadians through the aid package, Americans through the tariff costs Carney says they bear.

What comes next

American voters go to the polls next month. No new negotiating round has been announced, and the embassy's accusation puts a fresh political obstacle in front of any restart of the talks that collapsed in August. Whether Washington follows its fact sheet with any formal step against the officials it named is an open question.

Ford has already made his position clear: he is not planning on going back.