Carney and Trump Signal Progress Toward Trade Deal as Budget Nears

OTTAWA – November 2, 2026

Prime Minister Mark Carney said he had a constructive conversation with U.S. President Donald Trump about the future of trade between the two countries, and that their teams will work in the coming weeks toward an agreement.

Carney posted that the exchange built on recent constructive discussions on the outlines of a mutually beneficial deal that would create jobs, improve affordability, and fully respect Canada’s languages, culture, and sovereignty. Trump later told reporters in Iowa that the two sides had the “concept” of a deal that would be great for American farmers and fine for Canada.

Trump said the scope of any agreement could include the Keystone XL pipeline project. He also indicated that U.S. farmers would pay no tariffs on Canadian products under the arrangement being discussed. No final details have been confirmed by either side. Canada has faced 50 percent U.S. tariffs on a range of goods since talks broke down in August.

The latest comments come days before U.S. midterm elections. Trade issues have featured in races in northern border states. Carney has previously said any progress has come because the U.S. side is moving closer to Canada’s position, and that Ottawa’s red lines on sovereignty, language, and key industries have not changed. He has also said he cannot be certain a signed agreement would be honoured.

The federal budget is scheduled to be tabled on Thursday. A senior government source told CBC the document will include new affordability measures, business tax incentives, and investments in infrastructure, defence, and culture. The government is expected to frame the budget as ambitious but fiscally sound. Further details are anticipated on private investment in Canada’s four largest airports and on the government’s plan to balance the operational budget a year early.

Finance Minister François-Philippe Champagne has described the budget as the next step in the government’s plan. The Parliamentary Budget Officer has projected higher deficits than previously forecast and has raised questions about the timeline for meeting certain fiscal anchors. The government has said the budget is not a reaction to the U.S. midterms.

Industry Minister Mélanie Joly has separately said Canada and the European Union are moving from a free-trade agreement toward the idea of a common market. She described the associate membership discussions as covering certification standards for passengers, products, vehicles, and electrical equipment. Carney has said Canada and the EU are working toward the deepest possible partnership short of full membership.

For resource regions such as northwestern Ontario, any change in U.S. tariffs on steel, autos, or other goods would affect supply chains that move through the region. No specific new measures for the northwest were announced in connection with the latest trade comments. Critical minerals development and infrastructure projects already designated as national interest remain part of Ottawa’s broader diversification strategy.

No timeline has been given for a completed Canada-U.S. agreement. Both leaders have described the current stage as the concept of a deal rather than a finished text. Canadian officials have said negotiators will continue working in the coming weeks. Whether that work produces terms both sides are willing to sign and enforce remains open.

The budget on Thursday will provide the government’s domestic response to the same economic pressures. Officials have said it will contain more details on previously announced infrastructure and investment plans. For now, the public signal from both Ottawa and Washington is that talks have resumed with a clearer outline than existed in August.