Canada’s Carney & Trump Report Progress in U.S.-Canada Trade Talks

Canadian Prime Minister Mark Carney and U.S. President Donald Trump announced Sunday that Washington and Ottawa have made progress toward resolving their bilateral trade dispute, with negotiating teams set to work over the coming weeks on an agreement covering agricultural tariffs, steel, automobiles, and the Keystone XL pipeline, according to The Associated Press on KCBS Radio.

Saturday Call and Keystone XL & Farm Tariff Discussions

Carney wrote on social media Sunday that a constructive Saturday conversation with Trump built on recent discussions around a deal designed to create jobs, lower costs for families, and safeguard Canada's languages, culture, and sovereignty.

Hours later, upon landing in Iowa for a campaign rally, Trump said the two countries have "the concept of a very good deal with Canada" and are "now very close to having a deal." Trump stated that the negotiations include construction of the Keystone XL pipeline and eliminating tariffs paid by U.S. farmers on Canadian goods, alongside ongoing discussions over U.S. duties on Canadian steel and automobiles.

Shift From August’s 50% Tariffs on $20 Billion in Goods and Canada-EU Alliance

Sunday's announcements marked a shift from August, when Ottawa walked away from talks over U.S. demands regarding Canadian sovereignty, French-language protections, and the auto sector, prompting Trump to impose 50% tariffs on roughly $20 billion in Canadian goods and triggering Canadian retaliation.

The tariff dispute has weighed on border-state Senate contests, including in Michigan — where Republican Senate candidate Mike Rogers has called for ending the tariff war — and Maine. McGill University political science professor Daniel Béland noted that recent U.S. tariff adjustments reflected White House recognition of political risks in border states, while University of Toronto historian Robert Bothwell cautioned that final terms remain unresolved and compared the thaw to "five minutes of variable sunshine."

Meanwhile, seeking to reduce reliance on the United States after repeated "51st" state rhetoric from Washington, Carney launched a new alliance with the European Union on Friday aimed at making Canada the bloc's first "associate member" and doubling Canadian exports to non-U.S. markets over the next 10 years, as Conservative opposition leader Pierre Poilievre urged Carney on Sunday to finalize a concrete trade agreement.