Trump and Carney signal progress toward potential U.S.-Canada trade deal
The leaders say their teams will work in the coming weeks to develop an agreement that could ease trade tensions, address tariffs and include the Keystone XL pipeline.
On the Dash:
- A potential trade agreement could ease tariffs that have affected cross-border automotive and steel trade, although the leaders have not announced finalized terms.
- Tariff relief remains a priority for the automotive sector as U.S. and Canadian officials continue negotiations over vehicle and steel imports.
- Any agreement could affect North American supply chains, but the article does not detail specific automotive provisions or changes to existing tariffs.
On November 1, President Donald Trump said that his administration has a “concept” of a trade deal with Canada that would benefit U.S. farmers and the country as a whole.
While Canadian Prime Minister Mark Carney described his conversation with Trump as a good one on the future of trade between the two nations, the call builds on recent constructive discussions on the outlines of a mutually beneficial agreement that would create jobs, improve affordability and fully respect Canada’s languages, culture and sovereignty. Carney wrote on X that the countries’ teams will work in the coming weeks to deliver that outcome.
Canadian Prime Minister Mark Carney announced progress towards a Canada-US trade deal after speaking with US President Donald Trump, two days before the midterm elections.
Teams from both countries will work “in the coming weeks”, Carney said.
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In recent months, the United States and Canada have imposed billions of dollars in tariffs on each other’s goods. Those tariffs have become a significant issue in northern border states such as Michigan and Maine as Tuesday’s U.S. midterm elections approach. Although Trump said last week that a deal was coming soon, Ottawa previously reported limited progress, despite efforts to ease tariffs on steel and autos.
Trump said the agreement would include the Keystone XL pipeline project, which he supports, and that Canada would pay for the project while the United States would provide the route. Plans to revive the project remain unclear, as the pipeline would have carried 830,000 barrels of oil per day from Alberta’s oil sands to Cushing, Oklahoma, and on to Gulf Coast refineries. Canada, in turn, sends more than 90% of its crude oil production to the United States.
TC Energy, the company behind Keystone XL, lost billions of dollars when the project was canceled. The company later spun off its crude pipeline business into a new entity called South Bow. South Bow and U.S. firm Bridger Pipeline have proposed the Prairie Connector, a 550,000-barrel-per-day pipeline that would connect Alberta and Wyoming and use some Keystone XL pipe already installed in Canada. Nevertheless, South Bow plans to decide in 2027 whether to proceed.