Trump says U.S. and Canada have concept of a 'very good' trade deal

OTTAWA · U.S. President Donald Trump announced on Sunday that the United States and Canada have agreed on the concept of a new trade deal. Speaking to reporters in Dubuque, Iowa, Trump said the two countries were "very close" to reaching an agreement. He described the potential deal as "very good" and said it would benefit American farmers and the country overall. Prime Minister Mark Carney confirmed he had spoken with Trump the previous day, calling it a "good conversation" about the future of trade.

Carney said in a social media post that the discussion built on recent constructive talks about a mutually beneficial agreement. He said such a deal should create jobs for workers, improve affordability for families and fully respect Canada's languages, culture and sovereignty. "Our teams will now be working in the coming weeks to deliver that outcome," Carney wrote. A spokesperson for the Prime Minister's Office said the leaders' conversation took place on Saturday.

Trump told reporters that the Keystone XL pipeline project was part of the negotiations, stating that Canada would pay for "all of it." He said, "We're going to give them the route, and it's largely been determined but they'll build the Keystone pipeline." The proposed pipeline would transport more than 800,000 barrels of oil per day from Alberta to the United States. Former president Joe Biden revoked a key permit for the project in 2021, and Trump signed an executive order in April to approve a new pipeline using portions of the abandoned route.

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The leaders' comments come two days before the U.S. midterm elections, where trade with Canada is a key issue in several northern border states. The trade dispute has become deeply unpopular in states like Michigan and Maine, which have tight Senate races that could decide congressional control. Polling indicates Democrats are favoured to win a majority in the House of Representatives. A Democrat wave could place a check on Trump's use of executive powers during the remainder of his term.

Conservative Leader Pierre Poilievre responded to the news by urging Carney to "get a great deal" for Canada. He said everyday Canadians cannot afford to wait for a trade agreement with the United States. "The prime minister promised in the last election he would get an even better deal than we had before. He's broken that promise so far," Poilievre said at a press conference. "It's time for Mr. Carney to put the big talk in the past and deliver real results."

Neither the U.S. nor Canadian side has released any specific terms under discussion, such as which tariffs would be removed or a timeline for implementation. The announcement follows months of escalating trade conflict, with both countries imposing billions of dollars in tariffs on each other's goods. In August, trade talks collapsed and Trump imposed 50 per cent tariffs on an array of Canadian products. Carney said last week that Canada was not yet in a position to reach a deal, and would only agree when it suited Canadian interests.

With files from The Canadian Press, Toronto Star and investingLive