Canada's Carney reports progress in trade talks with US. Trump talks up
'concept' of a deal
[November 02, 2026] By
ROB GILLIES
TORONTO (AP) — Canadian Prime Minister Mark Carney said Sunday he had a
constructive conversation with U.S. President Donald Trump about a
potential trade deal, with negotiators set to work toward an agreement
in the coming weeks as the countries seek to resolve their bitter trade
dispute just days before the U.S. midterm elections.
Trump subsequently said both sides had “the concept" of a mutually
beneficial deal.
Carney said the conversation built on recent discussions about the
outlines of a deal that would create jobs, lower costs for families and
protect Canada’s languages, culture and sovereignty.
“Our teams will now be working in the coming weeks to deliver that
outcome,” Carney wrote on social media.
Hours later, after landing in Iowa for a rally, Trump said, “We have the
concept of a very good deal with Canada.”
“We’ve been losing money for many years with Canada, many many years,”
he said. “So we have — we are now very close to having a deal.”
The U.S. president mentioned speaking with Carney on Saturday and said
the possible agreement is “going to be great for our farmers, great for
our country, and it’ll be fine for Canada.”
Trump said the negotiations involved construction of the Keystone XL
pipeline and prospects that the agreement could erase tariffs paid by
U.S. farmers for Canadian products.
“Part of the agreement is that our farmers will have to pay no tariffs,”
he said, even though his comments also made clear that final details had
not yet been established.
Still, the upbeat assessment from both leaders was a shift from August,
when Canada walked away from negotiations after rejecting U.S. demands
that Carney said threatened Canadian sovereignty, French-language
protections and the auto industry. Trump responded with 50% tariffs on
roughly $20 billion in Canadian goods, prompting Canadian retaliation.
Carney said last week that trade talks had picked up because Washington
was moving closer to Canada’s position.
As recently as Wednesday, Carney said the countries were not yet in a
position to reach an agreement before Tuesday’s midterm elections.
The two sides have been discussing possible relief from U.S. tariffs on
Canadian steel and automobiles, although no details of a potential
agreement have been announced.
[to top of second column] |
President Donald Trump greets Canada's Prime Minister Mark Carney
during a summit to support ending the more than two-year
Israel-Hamas war in Gaza after a breakthrough ceasefire deal, Oct.
13, 2025, in Sharm El Sheikh, Egypt. (AP Photo/Evan Vucci, Pool,
File)
 Trump’s trade war with Canada has
become an issue in Tuesday’s elections, particularly in Michigan and
Maine, where crucial Senate races are taking place. Michigan
Republican Senate candidate Mike Rogers has called for an end to the
tariff war.
Daniel Béland, a political science professor at McGill University,
said recent U.S. tariff adjustments affecting Canada showed the
White House recognized the political risks of its trade war,
particularly in border states.
Robert Bothwell, a University of Toronto historian, said Carney’s
conversation with Trump was unlikely to affect Tuesday’s elections
and cautioned against reading too much into the improved tone.
He compared the apparent thaw to a passing weather system bringing
“five minutes of variable sunshine. Rain later.”
Trump’s trade war and repeated threats to make Canada the 51st U.S.
state have pushed Carney to reduce Canada’s dependence on its
southern neighbor. Canada and the European Union launched a new
alliance Friday, with Carney seeking to make Canada the bloc’s first
“associate member” and double exports to countries other than the
United States over the next decade.
Canadian Conservative opposition leader Pierre Poilievre urged
Carney on Sunday to reach a trade deal, saying Canadians could not
afford to wait.
“It’s time for Mr. Carney to put the big talk in the past and
deliver real results,” Poilievre said.
All contents © copyright 2026 Associated Press. All rights reserved
 |
