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 Carney announced substantial progress in free-trade negotiations with the Association of Southeast Asian Nations (ASEAN) and the completion of talks with the Philippines. Both agreements aim to reduce Canada’s reliance on the U.S. amid ongoing trade tensions.
Carney described the conversation with Trump as ‘substantive’ and noted the possibility of a bilateral deal, though no agreement has been finalized. He emphasized that Canada would not accept terms that harm its auto industry, which has suffered under Trump’s tariffs. Negotiations between the two countries resumed after collapsing in August following last-minute U.S. demands that Canada deemed unacceptable.
The U.S. imposed 50% tariffs on about $20 billion in Canadian goods in September, prompting retaliatory measures from Canada. A potential trade deal could reduce tariffs on key sectors like steel and aluminum. However, Democrats’ midterm victories have complicated the situation, as they have pledged to challenge Trump’s tariffs, leaving Canada with a difficult choice: accept a partial deal or hold out for free trade.
Carney is attending multiple international summits, including the ASEAN summit in Manila, where he hopes to sign the ASEAN agreement next year. The deal is expected to add nearly 2 billion Canadian dollars (US$1.4 billion) to Canada’s economy and create almost 14,000 jobs. The Philippines agreement, covering over 90% of tariff lines, could triple Canadian exports to the country by 2035.