Trump, Carney's friendly spar in the Oval Office

PRESIDENT TRUMP and Canadian Prime Minister Mark Carney held a friendly sparring session over trade and Canada’s independence Tuesday in front of cameras in the Oval Office.

The two leaders appeared friendly and at ease, even after Trump belittled Canada over social media only minutes before Carney arrived at the White House.

Once the cameras began rolling, it was mostly warmth and good-natured ribbing between the two leaders, despite the backdrop of tensions over tariffs and Trump’s repeated suggestions of making Canada the 51st state.

Trump pointed out that Carney's party appeared headed for a big defeat earlier this year, but the electoral tides turned when Trump began making his trade war threats and musings about annexing Canada.

“I think I was probably the greatest thing to happen to him, but I can’t take full credit,” Trump said.

"I just want to be friends with Canada,” he added later. “Regardless of anything, we’re going to be friends with Canada.”

Still, the tensions between the two leaders were apparent at times.

Trump reiterated his desire to make Canada the 51st state.

“I still believe that,” Trump said, saying that the border between the U.S. and Canada seems random to him. “But it takes two to tango, right?”

Carney said repeatedly that Canada is “not for sale” and “won’t be for sale ever.”

“Time will tell,” Trump responded. “It’s only time. But I say, never say never. I’ve had many many things that are not doable, and they ended up being doable.”

On trade, the president said the U.S.-Mexico-Canada Agreement (USMCA) he negotiated in his first term to replace NAFTA may not be necessary anymore, calling it a “transitional deal.”

Carney called the USMCA the “basis for an existing negotiation” on tariffs.

Also during Carney's visit, Trump announced that the U.S. is calling off air strikes against the Iranian-backed Houthis, saying they reached out to his administration to communicate they don’t want to fight anymore.

And the president teased a “very big announcement” ahead of his trip to the Middle East next week.

“As big as it gets and I won’t tell you on what, but it’s very positive,” Trump said.

Read The Hill’s 5 takeaways from the Trump-Carney meeting here.

Trump on Tuesday downplayed the need for trade deals with other countries, even as Treasury Secretary Scott Bessent teed up a possible near-term announcement or two.

“We don’t have to sign deals,” Trump said. “They have to sign deals with us. They want a piece of our market. We don’t want a piece of their market…Think of us as a super luxury store. A store that has the goods.”

In testimony before Congress, Bessent said he expects to begin announcing new trade deals “as early as this week” with “some of our largest trading partners.”

However, Bessent said the administration has not engaged in negotiations with China yet.

The U.S. trade deficit expanded in the first quarter of the year, although this was likely due to companies rushing to import foreign products before the tariffs kicked in.

Former Vice President Mike Pence warned of a “price shock” and other consequences of the trade wars in an interview on CNN.

Toy manufacturer Mattel, which makes Barbie dolls, announced it would be “taking pricing action” due to the tariffs.

That announcement comes as Trump has repeatedly returned to a talking point about how children can make do with fewer dolls if the price of dolls goes up.

“I don’t think that a beautiful baby girl needs — that’s 11 years old — needs to have 30 dolls,” Trump said Sunday on NBC’s “Meet the Press”. “I think they can have three dolls or four dolls."

Hollywood is trying to figure out what to make of Trump’s threat to slap tariffs on foreign-made films, although some are hopeful it could present an opportunity for new federal tax incentives to make the U.S. more competitive.

California Gov. Gavin Newsom (D-Calif.) on Tuesday pushed for a "real federal partnership to Make America Film Again.”

Still, Trump’s threat infuriated California Democrats, who described the idea of a tariff on films as “nonsensical.”

“There are things that we can do to increase production [and encourage] the film industry to film in the United States,” Rep. Pete Aguilar (Calif.), the chair of the House Democratic Caucus, told reporters. “We should be looking at those ideas and strategies, not reckless tariffs that will cost people jobs and raise costs for Americans.”

Actor Jon Voight says he gave Trump the idea for a tariff on movies.

The U.S. is the largest film and television exporter in the world, although physical productions in Los Angeles are down sharply because other states, such as Georgia, and countries, including the United Kingdom, offer generous tax incentives.