Carney Says Canada, US to Work Towards Trade Deal in Coming Weeks After Trump Call

Canadian Prime Minister Mark Carney and US President Donald Trump have agreed to push towards a potential trade deal in the coming weeks following what Carney described as a constructive conversation on bilateral trade. The renewed engagement comes ahead of the November 3 US midterm elections, with tariffs on Canadian goods continuing to strain relations between the neighbouring countries.

Carney said on Sunday that his conversation with Trump built on earlier discussions about the broad framework of a mutually beneficial agreement. “Our teams will now be working in the coming weeks to deliver that outcome,” Carney wrote on social media.

Trump also confirmed the discussions, saying his administration had the “concept” of a deal that would benefit American farmers and the country. He additionally suggested that the agreement could involve the Keystone XL pipeline, a controversial energy project cancelled by former US President Joe Biden in 2021. Trump said Canada would build and pay for the pipeline, with the US providing the route.

The latest developments mark a shift from August, when Canada withdrew from negotiations after rejecting US demands that Carney said threatened Canadian sovereignty, French-language protections and its automobile industry. Trump subsequently imposed 50 per cent tariffs on roughly $20 billion worth of Canadian goods, prompting Ottawa to retaliate.

The renewed negotiations have focused partly on easing US tariffs on Canadian steel and automobiles, including duties of up to 50 per cent on steel and 25 per cent on vehicles. However, progress remained limited as recently as October 28, when a Canadian official said discussions had yet to produce significant results.

The trade dispute has also become an issue in Tuesday's US midterm elections, particularly in Michigan and Maine, where Republican candidates face pressure over the impact of tariffs on local businesses. Michigan Republican Senate candidate Mike Rogers has called for an end to the trade confrontation.

Meanwhile, Carney has accelerated efforts to reduce Canada's dependence on the US market. Canada and the European Union launched a new economic and security alliance on Friday, while Carney has set a target of doubling exports to markets outside the US over the next decade.