Canadian Prime Minister Mark Carney claims to work toward trade deal with U.S. during talks with President Trump

What This is

• Prime Minister Mark Carney says he had a constructive call with President Donald Trump and that both sides will work in the coming weeks toward a possible trade deal.
• The renewed talks follow an August breakdown that was followed by new U.S. tariffs on roughly $20 billion in Canadian goods and Canadian retaliatory tariffs.
• Steel and auto tariffs are central to the dispute, including U.S. duties described as up to 50% on steel and 25% on cars, with talks aimed in part at easing those measures.
• Carney says Canada will only sign a deal that meets its bottom lines, including protecting Canadian sovereignty and policies tied to language and culture.
• Carney has also said Canada is not ready to agree to a deal right now and that a comprehensive agreement is unlikely before the U.S. midterms.
• Trump and some White House officials have said a deal is close or the trade war could end soon, even as public details remain thin.
• Both governments are navigating midterm-election politics, including U.S. claims that Canadian politicians are trying to influence the vote, which Carney rejects as baseless.

Why This Matters

• Tariffs between close allies strain trust and make future agreements harder to enforce.
• With cars, steel, and lumber tied to cross-border supply chains, prolonged tariff uncertainty can trigger layoffs, delayed investment, and higher prices.
• Midterm-election pressure can reward short-term tariff moves over stable rules, making outcomes less predictable for businesses and workers.