MONTREAL: A potential breakthrough emerged Sunday in the tense trade standoff between Washington and Ottawa, as Canadian prime minister Mark Carney confirmed a “good conversation” with US president Donald Trump following months of tariff battles.
The call signals a possible thaw in relations that have deteriorated sharply since Trump’s second term began. Canada, among America’s largest trading partners, has repeatedly found itself targeted by sweeping import duties.
Carney described the exchange as building on “recent constructive discussions on the outlines of a mutually beneficial trade deal.” Teams from both governments now face a timeline of several weeks to finalize the agreement, he said on social media.
Trump has roiled global commerce with aggressive tariff policies aimed at both adversaries and allies. Talks between the two nations collapsed in August, triggering a cascade of new levies. Some of those measures have since been rolled back ahead of crucial US midterm elections.
Voter concern over rising costs has intensified pressure on the administration. Trump’s tariffs helped fuel inflation, and affordability remains a defining campaign issue.
The post-breakdown duties affected roughly US$20 billion in goods, from hockey sticks to cement. Ottawa responded with matching tariffs on American products, prompting yet another round of US levies reaching as high as 50% on select items.
Trump told reporters Sunday that officials had “the concept of a very good deal with Canada,” one he claimed would benefit American farmers and the broader economy. Speaking ahead of a midterms event in Iowa, he also indicated the pact would include construction of the Keystone XL pipeline. That project faced years of environmental opposition and was shelved under former president Joe Biden.
Meanwhile, the turbulence in US trade policy has pushed Canada toward stronger ties with other partners. On Friday, the European Union and Canada announced an arrangement making Ottawa the bloc’s first “associate member,” though some EU officials disputed that specific designation.
