Trump, Carney discuss possible US-Canada deal to ease trade tensions

A possible trade deal between the US and Canada may be taking shape after President Donald Trump spoke with Canadian Prime Minister Mark Carney. Trump said his administration had a “concept” for an agreement, while Carney described their latest conversation as “good." US President Donald Trump has said the US has the “concept” of a new trade deal with Canada.

(AP Photo/Jacquelyn Martin)What Trump saidTrump spoke to reporters after getting off his plane in Dubuque, Iowa, on Sunday, as per Reuters. He said he had spoken with Carney on trade in recent days. “I spoke to him again yesterday, and we have the concept of a deal that’s going to be great for our farmers, great for our country, and we’ll be fine for that,” Trump said, according to Reuters.

Trump said the trade deal would include the building of the Keystone XL pipeline. The pipeline has long been opposed by environmental activists and was shelved under former President Joe Biden. Last week, Trump said he expected a new trade deal with Canada “pretty soon”, but gave no details, according to AFP.

Carney wrote on X that he had a “good conversation” with Trump on the two countries’ fraying trade ties. He said the latest talks built on “recent constructive discussions on the outlines of a mutually beneficial trade deal.” “Our teams will now be working in the coming weeks to deliver that outcome,” Carney said.

Since starting his second term, Trump has changed global trade by imposing tariffs on both allies and rivals. Canada, which is one the US's biggest trading partners has also faced several of these tariffs. Trade talks between the two countries broke down in August.

Trump then imposed several new tariffs, although he has lifted some of them ahead of them US midterm elections, as per AFP. The tariffs affected around $20 billion worth of goods, including hockey sticks and cement. Canada responded by imposing tariffs on an equal value of American goods.

Trump then hit back with another round of tariffs, reaching as high as 50% on certain products. The tariffs have also added to concerns about rising prices in the US. Affordability remains a key issue for voters, and the tariffs have fueled inflation across the country.

Meanwhile, Canada has been building stronger trade ties with other partners. On Friday, the European Union and Canada announced an alliance that would make Canada the bloc's first "associate member". However, some EU members disagreed over the use of that term, according to AFP.

Khushi Arora is a Content Producer at Hindustan Times, where she writes for the US Desk, covering everything happening in the United States, while maintaining quality and delivering impactful stories across all beats. She previously worked at Zee News for over a year where she explored multiple beats including News Desk, Education and Lifestyle.

With a background in English Literature, Khushi blends sharp research with thoughtful storytelling, shaping stories that go beyond headlines and bring clarity and credibility to every piece she writes. Beyond the newsroom, she enjoys reading, watching cinema and loves having long conversations about books, films and everything in between.Read More