Carney says negotiators will work towards a potential deal as the two countries explore tariff relief for Canadian steel and automobiles following months of trade tensions.
Canadian Prime Minister Mark Carney said Sunday that he had a constructive conversation with US President Donald Trump about a potential trade deal, with negotiators expected to work towards an agreement in the coming weeks. The development comes days before the US midterm elections as Trump’s tariffs on Canadian goods remain a point of contention between the two countries.
Carney said on Sunday that he had a constructive conversation with Trump about a possible trade deal. He added that the discussion built on earlier exchanges about the broad framework of an agreement aimed at creating jobs, reducing costs for families and safeguarding Canada’s language protections, culture and sovereignty.
“Our teams will now be working in the coming weeks to deliver that outcome,” Carney wrote on social media.
How Canada-US trade negotiations stalled
The latest positive assessment marks a change from August, when Canada withdrew from negotiations after rejecting US demands that Carney said threatened Canadian sovereignty, French-language protections and the country’s automotive industry.
Trump subsequently imposed 50 per cent tariffs on roughly $20 billion worth of Canadian goods, prompting Ottawa to retaliate.
Negotiations have resumed since then, although progress has been uneven. Last week, Carney said discussions had picked up slightly, arguing that movement towards an agreement reflected Washington coming closer to Canada’s position.
More from WorldAs recently as Wednesday, however, the Canadian prime minister said the two countries were not yet ready to conclude a deal before Tuesday’s midterm elections.
Trade dispute becomes an election issue
Trump’s trade confrontation with Canada has emerged as an issue in the November 3 midterm elections, particularly in Michigan and Maine, where Republican candidates have faced pressure over the impact of tariffs on local businesses.
Michigan Republican Senate candidate Mike Rogers has called for an end to the tariff dispute, reflecting concerns about the political and economic consequences of the trade war.
The renewed diplomatic engagement could offer an opening for both countries to ease tensions, although the timing and terms of any deal remain uncertain.
Canada looks beyond US market
The trade dispute, alongside Trump’s repeated threats to make Canada the 51st US state, has encouraged Ottawa to accelerate efforts to diversify its international economic partnerships.
Canada and the European Union launched a new economic and security alliance on Friday. Carney has also set a goal of doubling Canadian exports to markets outside the United States over the next decade.
The latest discussions with Trump therefore come as Canada seeks to secure relief from US tariffs while reducing its longer-term dependence on its southern neighbour.
With inputs from agencies
