Canadian Prime Minister Mark Carney reported progress in trade talks with U.S. President Donald Trump during a call that included senior administration officials. The discussion came as Canada finalized free-trade negotiations with the Association of Southeast Asian Nations (ASEAN) and the Philippines, part of efforts to reduce reliance on the U.S. amid ongoing trade tensions.
Carney described the conversation with Trump as “substantive,” noting the possibility of a bilateral deal but cautioning that negotiations are not yet complete. He emphasized that Canada would not accept any agreement that harms its auto industry, which has suffered under Trump’s tariffs. The U.S. imposed 50% tariffs on $20 billion in Canadian goods in September after negotiations collapsed in August.
The Canadian government estimates the ASEAN deal could boost its economy by nearly 2 billion Canadian dollars (US$1.4 billion) and create 14,000 jobs, particularly in agriculture and manufacturing. The Philippines agreement, covering 90% of tariff lines, aims to triple Canadian exports to the country by 2035. Carney is attending multiple international summits, including meetings with ASEAN leaders and Chinese President Xi Jinping.
Carney has set a goal to double Canadian exports to non-U.S. countries by 2035. The ongoing trade discussions with the U.S. present a dilemma for Canada: accept a deal that reduces but does not eliminate tariffs or hold out for free trade as Congress challenges Trump’s policies.