The White House · Report · File No. 261114-596
Carney says Canada-U.S. trade talks are making progress after August collapse
Canada's prime minister says a deal with Trump is possible but not yet reached. Tariffs on Canadian goods have been an issue in U.S. prices, so a deal could ease or prolong them.
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Canadian Prime Minister Mark Carney said Saturday that Canada and the United States are making progress toward a trade deal. Talks between the two countries collapsed in August 1.
Carney spoke to reporters in Manila, the capital of the Philippines. He said he had a long call with President Donald Trump just before leaving for Europe and Asia 1.
We are making progress. There is the possibility of a deal, a bilateral deal. But we’re not yet there.
Carney said U.S. Trade Representative Jamieson Greer and Trump's new White House chief of staff, Stephen Miller, also took part in the call. He said Canada would not accept a deal that undermines its auto industry, which has been battered by Trump's tariffs 1.
How the talks broke down
Canada suspended the talks in August after last-minute U.S. demands that Ottawa considered unacceptable. Washington then put 50% tariffs on about $20 billion in Canadian goods. Canada hit back with its own tariffs in September, and the countries have since resumed discussions 1.
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Before the midterm elections, Trump said the countries were "very close" to an agreement. Carney said Washington had backed away from demands involving Canada's culture, French-language protections and ability to negotiate other trade agreements 1.
On Nov. 1, after another call with Carney, Trump said of the talks:
We have the concept of a very good deal with Canada.
Trump also said part of the agreement was that U.S. farmers would pay no tariffs, though he said final details were not settled. Talk of relief has centered on Canadian steel and automobiles, but no details have been announced 2.
What a deal could change
Canada and the United States have one of the world's largest trading relationships. A deal could reduce some tariffs on key sectors, including steel and aluminum 1.
Tariffs, which are taxes on imported goods, became an issue in the midterms. Democrats blamed them for higher prices and pledged to challenge them 1.
The Democratic victories leave Canada with a choice. It can accept a deal that cuts Trump's tariffs but leaves some in place. Or it can hold out for free trade while Congress prepares to challenge the tariffs 1.
Canada looks to Asia
Carney also announced that Canada had substantially concluded free-trade talks with the Association of Southeast Asian Nations, a bloc of nearly 700 million people. He said Canada had completed separate negotiations with the Philippines 1.
Both agreements are part of Canada's effort to depend less on the United States during Trump's trade war. Canada estimates the Asian bloc deal could add nearly 2 billion Canadian dollars (US$1.4 billion) to its economy. Officials hope to sign it next year 1.
Carney will next attend a regional summit in Cambodia and then the Asia-Pacific Economic Cooperation summit in China, where he is scheduled to meet President Xi Jinping 1.
That matters because Carney's own words are cautious. Talks have raised hopes before, including a Nov. 1 call that Trump described in upbeat terms, and the August collapse shows how fast they can turn 12. For now, the 50% tariffs on about $20 billion in Canadian goods remain the last reported U.S. action, and no deal has been announced 1.
The Record
- Canada suspended trade talks in August after U.S. demands it considered unacceptable; the U.S. then put 50% tariffs on about $20 billion in Canadian goods 1.
- Canada imposed retaliatory tariffs in September 1.
- Trump said the sides had 'the concept of a very good deal' after a call with Carney 2.
- Carney said in Manila that the two countries are making progress but are not yet at a deal 1.
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Sources
- ABC News (AP), “Canada's Carney reports progress in trade talks with Trump as he expands ties with Asia” (2026-11-14). abcnews.com/US/wireStory/canadas-carney-reports-progress-tra
- Anchorage Daily News (AP), “Canada's Carney reports progress in trade talks with US; Trump talks up 'concept' of a deal” (2026-11-02). adn.com/nation-world/2026/11/01/canadas-carney-reports-progr
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