Carney says he's 'making progress' with Trump on possible US-Canada trade deal

This is a modal window. Beginning of dialog window. Escape will cancel and close the window. End of dialog window. Canadian Prime Minister Mark Carney said Saturday trade negotiations between his government and the U.S. were progressing amid a monthslong tariff battle between the two countries. The leader told reporters in Manila he had a conversation with President Trump, U.S. Trade Representative Jamieson Greer, White House chief of staff Stephen Miller and other officials "just before" heading to the Philippines for the Association of the Southeast Asian Nations' (ASEAN) three-day summit, adding that Washington and Ottawa are "making progress." While the prime minister's remarks suggest a renewed interest in resolving the U.S.-Canada trade war, he also stressed he would not "settle for a deal" that is inconsistent with "a viable Canadian auto sector." "This is one of the fundamental issues in our trade negotiation, and we are making progress," Carney said. In August, Canada walked away from trade negotiations with the U.S. after Carney said the Trump administration introduced eleventh-hour demands Ottawa was unwilling to meet. The U.S. responded by imposing 50 percent tariffs on $20 billion worth of Canadian exports. Canada reacted with retaliatory tariffs, with officials vowing to match Washington's duties "dollar for dollar." In his Saturday remarks, the prime minister stressed the importance of the Canadian car manufacturing industry to the U.S., emphasizing the American auto sector depends partly on "the degree of integration" with its northern neighbor. "This is one of the most challenging issues in the trade negotiations," Carney said. "As I say, we're making progress. We're not there yet." Carney addressed Ottawa's ongoing negotiations with Washington ahead of ASEAN's three-day summit in Manila, at which Trump is also slated to appear. The prime minister's press conference served to announce two Canadian deals with ASEAN and the Philippines, both of which aimed to reduce the North American country's trading reliance on the U.S. "Today's announcements are part of a strategy of developing a dense web of reliable partners to create more opportunities for our businesses, more choice for Canadians, better jobs for our workers, and reducing our relative reliance on the United States," Carney said. The Canadian leader also told reporters his conversation with Trump ahead of his travels was "long" and "substantive." "There is a possibility of a deal, a bilateral deal, but we're not yet there," Carney said. The prime minister said his government is "ahead of schedule" on its goals to double its non-U.S. exports in under a 10-year period. Almost one in three of Canada's export dollars is currently coming from outside of the U.S., marking a 40-year high, according to Carney. Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.