U.S. President Donald Trump says Canada and the United States are nearing a potential trade agreement, describing negotiations as being at an advanced stage following discussions with Prime Minister Mark Carney.
Speaking to reporters in Iowa on Sunday, Trump said both countries had developed the framework for what he described as a mutually beneficial deal.
He expressed confidence that the agreement would support American farmers and businesses while also delivering benefits to Canada.
Carney confirmed on social media Sunday that he had a productive conversation with Trump about the future of bilateral trade. According to the Prime Minister’s Office, the two leaders spoke on Saturday.
The prime minister said their latest exchange built on earlier discussions about establishing a trade relationship that would generate employment, improve affordability and protect Canada’s cultural identity, languages and national sovereignty.
Carney added that negotiating teams from both countries would continue working over the coming weeks to turn those discussions into a formal agreement.
The renewed diplomatic engagement comes ahead of Tuesday’s U.S. midterm elections, with trade tensions between Canada and the United States becoming an important issue in several closely contested races.
Trump also revealed that reviving the Keystone XL pipeline was part of the negotiations, suggesting that Canada would cover the project’s construction costs while the United States would provide the necessary route.
The proposed pipeline, which could transport more than 800,000 additional barrels of Alberta oil to the United States, has faced nearly two decades of political, legal and environmental opposition.
Former U.S. president Joe Biden cancelled a crucial permit for the project in 2021 following objections from landowners, Indigenous communities and environmental organizations.
Trump has repeatedly promoted the pipeline’s revival as a potential achievement in his administration’s trade discussions with Canada. In August, he claimed that an agreement had been reached, sharing social media posts celebrating the project’s return.
Carney had previously raised the possibility of restarting Keystone XL as part of broader energy co-operation discussions that also included support for Canada’s steel and aluminum industries.
In April, Trump signed an executive order approving a new pipeline proposal that would incorporate existing sections of the abandoned Keystone project.
Meanwhile, Conservative Leader Pierre Poilievre urged the Liberal government to secure a favourable trade agreement without further delays.
Speaking at a Sunday news conference, Poilievre criticized Carney for failing to deliver on his earlier commitment to negotiate a better arrangement with Washington.
He argued that Canadian households and businesses were facing mounting economic pressures and could not afford continued uncertainty surrounding cross-border trade.
The developments come as American voters prepare for midterm elections that could significantly reshape the political balance in Washington.
Polling suggests Democrats are positioned to compete for control of the House of Representatives, where gaining three additional seats would secure a majority. The Senate remains more uncertain, although some surveys indicate that Democrats could potentially gain the four seats needed to take control.
A Democratic victory in Congress could place additional limits on Trump’s use of executive authority during the remainder of his presidency.
Canada-U.S. relations have deteriorated considerably during Trump’s second term, particularly following the introduction of sweeping tariffs and repeated remarks about potentially annexing Canada.
Trade tensions intensified in August after negotiations broke down, prompting Washington to impose tariffs of up to 50 per cent on various Canadian products and restrict imports of other goods.
Trump also signed an executive order seeking to rename Lake Ontario as Lake America, further aggravating diplomatic tensions.
The ongoing trade dispute has become especially contentious in states such as Michigan and Maine, where close Senate contests could influence which party controls Congress.
However, a Democratic victory in the midterms would not necessarily guarantee the removal of existing U.S. tariffs. Even a change in presidential leadership in 2028 might not immediately reverse Washington’s protectionist trade policies.
Despite the latest signs of progress, Carney maintained last week that Canada was not yet ready to finalize an agreement with the Trump administration.
Speaking ahead of a Liberal caucus meeting on Parliament Hill on Wednesday, the prime minister emphasized that Ottawa would proceed with a trade deal only when the proposed terms adequately protected Canadian interests.
