Politics1 min read

Canada's Carney hails 'good conversation' on trade with Trump

By · Published by Everything Blog

In short

Canadian Prime Minister Mark Carney and US President Donald Trump announced that negotiating teams will work in the coming weeks to finalize a trade pact. The breakthrough comes after months of retaliatory tariffs, including Washington targeting roughly US$20 billion in Canadian goods and placing duties of up to 50 percent on select items. Despite Trump easing certain levies ahead of the US midterm elections due to inflation concerns, he signaled that the revived deal must incorporate the construction of the Keystone XL pipeline. Meanwhile, Canada's ongoing effort to offset US tensions through an associate membership alliance with the European Union faces internal pushback in Europe.

Key points

  • Bilateral negotiating teams will spend the coming weeks attempting to finalize a mutually…: Bilateral negotiating teams will spend the coming weeks attempting to finalize a mutually beneficial trade agreement between Canada and the United States.
  • President Donald Trump is conditioning the final trade settlement on securing the constru…: President Donald Trump is conditioning the final trade settlement on securing the construction of the controversial Keystone XL pipeline.
  • Canada's parallel strategy to secure associate membership with the European Union is curr…: Canada's parallel strategy to secure associate membership with the European Union is currently being challenged by internal disagreements within the bloc.

Sources checked by our analysis pipeline: 1

MONTREAL: Canadian Prime Minister Mark Carney on Sunday (Nov 1) said he had a "good conversation" with US President Donald Trump on the two countries' fraying trade ties, after Washington imposed wide-ranging tariffs on its northern neighbour.

Carney said on social media that the latest talks built on "recent constructive discussions on the outlines of a mutually beneficial trade deal".

"Our teams will now be working in the coming weeks to deliver that outcome," he said.

In his second term, Trump has upended global trade by imposing tariffs on friends and foes alike, with Canada - one of the United States' biggest trading partners - often in his crosshairs.

High-level trade talks between the two countries broke down in August, prompting Trump to impose a host of new levies - some of which he has lifted ahead of crucial US midterm elections.

Affordability is a key issue for voters, and Trump's tariffs have fuelled inflation across the country.

The tariffs - enforced after the August talks broke down - impacted around US$20 billion worth of goods, ranging from hockey sticks…

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