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, aiming to reduce its reliance on the U.S. amid ongoing trade tensions.
Carney emphasized that while a bilateral deal with the U.S. is possible, key issues remain unresolved, particularly regarding protections for Canada’s auto industry. Negotiations had stalled in August after Washington imposed 50% tariffs on $20 billion in Canadian goods, prompting retaliatory measures from Ottawa. The U.S. has since softened some demands, but Democrats’ midterm victories have complicated the situation, leaving Canada weighing the benefits of a partial deal against the risks of prolonged tariffs.
The ASEAN agreement, expected to be signed next year, could boost Canada’s economy by nearly 2 billion Canadian dollars (US$1.4 billion) and create 14,000 jobs. The Philippines deal, 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, as part of his goal to double Canadian exports to non-U.S. markets by 2035.