Canada’s Carney hails ‘good conversation’ on trade with Trump

Canadian Prime Minister Mark Carney reported on Sunday that he had a productive conversation with US President Donald Trump regarding the deteriorating trade relations between the two nations. Carney acknowledged that their latest talks were based on previous constructive discussions on the framework of a mutually beneficial trade agreement. Carney's office announced that teams will be working in the coming weeks to bring this outcome to fruition.

Under President Trump's administration, global trade has been significantly altered by the imposition of tariffs on both allies and adversaries, including Canada, one of the United States' largest trading partners. High-level trade talks between the two countries came to a halt in August, leading Trump to impose a series of new tariffs, some of which have since been lifted before the US midterm elections.

These tariffs have affected approximately US$20 billion worth of goods, including items such as hockey sticks and cement. In retaliation, Canada imposed levies on an equal amount of American products, prompting Trump to impose additional tariffs of up to 50% on certain goods.

Despite Trump's recent prediction that a new trade agreement with Canada would be reached "pretty soon," no specific details have been provided. On Sunday, Trump confirmed the ongoing talks with Carney, stating that officials have the concept of a "very good deal" that would be advantageous for US farmers, the country as a whole, and Canada.

The trade deal would reportedly include the construction of the Keystone XL pipeline, which has been a contentious issue for environmental activists and was shelved during the previous administration under Joe Biden. The US president's erratic trade policies have prompted Canada to strengthen its ties with other allies. Recently, the European Union and Canada announced an alliance, with Canada becoming the bloc's first associate member, although there were some disagreements within the EU about the terminology used to describe this relationship.