Canadian Prime Minister Mark Carney said he had a constructive conversation with US President Donald Trump about a potential trade deal, with negotiators set to work toward an agreement in the coming weeks as the countries seek to resolve their bitter trade dispute just days before the US midterm elections.
Trump subsequently said both sides had “the concept" of a mutually beneficial deal.
Carney said the conversation built on recent discussions about the outlines of a deal that would create jobs, lower costs for families and protect Canada’s languages, culture and sovereignty.
“Our teams will now be working in the coming weeks to deliver that outcome,” Carney wrote on social media.
Hours later, after landing in Iowa for a rally, Trump said, “We have the concept of a very good deal with Canada”.
“We’ve been losing money for many years with Canada, many many years,” he said. “So we have — we are now very close to having a deal.”
The US president mentioned speaking with Carney and said the possible agreement is “going to be great for our farmers, great for our country, and it’ll be fine for Canada”.
Trump said the negotiations involved construction of the Keystone XL pipeline and prospects that the agreement could erase tariffs paid by US farmers for Canadian products.
“Part of the agreement is that our farmers will have to pay no tariffs,” he said, even though his comments also made clear that final details had not yet been established.
Still, the upbeat assessment from both leaders was a shift from August, when Canada walked away from negotiations after rejecting US demands that Carney said threatened Canadian sovereignty, French-language protections and the auto industry. Trump responded with 50% tariffs on roughly $20 billion in Canadian goods, prompting Canadian retaliation.
Carney said last week that trade talks had picked up because Washington was moving closer to Canada’s position.
As recently as Wednesday (local time), Carney said the countries were not yet in a position to reach an agreement before the midterm elections.
The two sides have been discussing possible relief from US tariffs on Canadian steel and automobiles, although no details of a potential agreement have been announced.
Trump’s trade war with Canada has become an issue in the elections, particularly in Michigan and Maine, where crucial Senate races are taking place. Michigan Republican Senate candidate Mike Rogers has called for an end to the tariff war.
Daniel Béland, a political science professor at McGill University, said recent US tariff adjustments affecting Canada showed the White House recognised the political risks of its trade war, particularly in border states.
Robert Bothwell, a University of Toronto historian, said Carney’s conversation with Trump was unlikely to affect the elections and cautioned against reading too much into the improved tone.
He compared the apparent thaw to a passing weather system bringing “five minutes of variable sunshine. Rain later”.
Trump’s trade war and repeated threats to make Canada the 51st US state have pushed Carney to reduce Canada’s dependence on its southern neighbour. Canada and the European Union launched a new alliance, with Carney seeking to make Canada the bloc’s first “associate member” and double exports to countries other than the United States over the next decade.
Canadian Conservative opposition leader Pierre Poilievre urged Carney to reach a trade deal, saying Canadians could not afford to wait.
“It’s time for Mr. Carney to put the big talk in the past and deliver real results,” Poilievre said.
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