Hermes Vector

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Carney says Canada and U.S. making progress toward trade deal

Canadian Prime Minister Mark Carney said Canada and the United States are making progress toward a trade deal after talks collapsed in August, though no agreement has been reached.

By Hermes Vector

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Illustration for: Carney says Canada and U.S. making progress toward trade deal

In brief

  • Carney said Canada and the U.S. are making progress toward a trade deal but are not yet there.
  • Talks collapsed in August, followed by 50% U.S. tariffs on about $20 billion in Canadian goods.
  • Canada will not accept a deal that undermines its auto industry.
  • Canada has substantially concluded free-trade negotiations with ASEAN and completed talks with the Philippines.

Carney says Canada and U.S. making progress toward trade deal

Canadian Prime Minister Mark Carney said on Saturday that Canada and the United States are making progress toward a trade deal, though the two countries have not yet reached an agreement.

Trade talks

Carney said he had a lengthy, substantive conversation with U.S. President Donald Trump and senior administration officials before leaving for Europe and Asia. U.S. Trade Representative Jamieson Greer and Trump’s new White House chief of staff, Stephen Miller, also participated in the call.

The countries resumed discussions after Canada suspended trade negotiations in August. Washington subsequently imposed 50% tariffs on about $20 billion in Canadian goods, prompting retaliatory Canadian tariffs in September.

Carney said Canada would not accept a deal that undermines its auto industry, which has been battered by Trump’s tariffs. 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.

Other trade efforts

Carney announced that Canada had substantially concluded free-trade negotiations with the Association of Southeast Asian Nations, a bloc of nearly 700 million people, and completed separate negotiations with the Philippines. The Philippines agreement covers more than 90% of tariff lines, Carney said.

The Canadian government estimates the ASEAN agreement could add nearly 2 billion Canadian dollars (US$1.4 billion) to Canada’s economy and create almost 14,000 jobs, particularly in agriculture and manufacturing. Officials hope to sign it next year. The Philippines agreement, expected to be signed next year, could help triple Canadian exports to the Philippines by 2035.

Why it matters

Canada and the United States have one of the world’s largest trading relationships. A trade deal could reduce some tariffs on key sectors, including steel and aluminum. Carney has made doubling Canadian exports to countries other than the United States by 2035 a central goal.

Sources

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.

Questions readers ask

Who are the Canadian and U.S. leaders involved in the recent trade talks?
Canadian Prime Minister Mark Carney and U.S. President Donald Trump are the leaders involved, along with U.S. Trade Representative Jamieson Greer and White House chief of staff Stephen Miller.
What recent actions led to the resumption of trade discussions between Canada and the U.S.?
Canada suspended trade negotiations in August, after which Washington imposed 50% tariffs on about $20 billion in Canadian goods, prompting retaliatory Canadian tariffs in September.
What are the projected economic benefits of Canada's new free-trade agreements with ASEAN and the Philippines?
The ASEAN agreement could add nearly 2 billion Canadian dollars to Canada’s economy and create almost 14,000 jobs, while the Philippines agreement could help triple Canadian exports to the Philippines by 2035.
When are the new trade agreements with ASEAN and the Philippines expected to be signed?
Officials hope to sign the ASEAN agreement next year, and the Philippines agreement is also expected to be signed next year.

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