Carney, Trump hold 'good conversation' as trade talks set to resume

OTTAWA · Prime Minister Mark Carney announced Sunday that he held a productive discussion with U.S. President Donald Trump about a future trade agreement. He said on social media the conversation built on recent talks about a mutually beneficial deal. Carney stated his vision for an agreement that would create jobs, improve affordability and respect Canadian sovereignty. He said both teams will work in the coming weeks to deliver that outcome.

A source familiar with the matter said formal negotiations are scheduled to restart within days. The Globe and Mail reported the source said Trump directed his officials to resume talks after speaking with Carney on Saturday. Discussions will reopen where they stalled in August over issues including automobile trade. A senior Canadian official told CBC News the exact format of the renewed talks remains unclear. Trump told reporters Sunday evening that "we have the concept of a deal that's going to be great for our farmers, great for our country, and it will be fine for Canada." A White House spokesperson released a statement welcoming continued engagement to finalize a deal for the American people. The leaders' contact occurs just before Tuesday's U.S. midterm elections, where the trade dispute has become a campaign issue.

Carney's optimistic post followed his remarks last week that Canada was not yet ready to agree to a U.S. trade deal. He said Wednesday his government seeks an agreement that serves Canadian interests first. Sources told CBC News Canadian officials had advised industry a deal was unlikely before the American elections. Nosy Mag reported last week that Carney said he would only sign a deal in the best interests of Canadians.

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The previous round of formal negotiations collapsed in August, with each side blaming the other. Carney later said U.S. demands would have destroyed major Canadian industries like auto, steel and aluminum. He also cited American objections to French-language content rules and attempts to restrict Canada's future trade deals. That impasse triggered reciprocal tariffs on billions of dollars in goods between the two countries.

Automotive trade remains a central obstacle, as it was during the summer breakdown. Sources told iPolitics a disagreement over tariff rates for heavy duty vehicles contributed to the deadlock. Canada believed it had secured a general auto tariff reduction but found heavy trucks excluded. The stalemate led Washington to impose duties on Canadian products, which Ottawa matched with its own retaliatory tariffs. Brian Clow, a former deputy chief of staff involved in past trade talks, urged caution despite the renewed dialogue. He said Trump aims to end Canadian auto production for the U.S. market and significant American compromises are needed. Flavio Volpe of the Automotive Parts Manufacturers' Association said any deal must help sectors bearing the tariff burden return to long-term profitability.

With files from CityNews, CBC News and The Globe and Mail