Carney and Trump Agree to Pursue a New Canada-US Trade Pact

Canadian Prime Minister Mark Carney said on Sunday, November 1, 2026, that he and US President Donald Trump agreed to pursue a new trade agreement in the coming weeks. The announcement revives negotiations between Canada and the United States that broke down in August, and it came two days before the US midterm elections on November 3, which will decide control of Congress.

Carney disclosed the conversation in a post on X. "Good conversation with President @realDonaldTrump on the future of Canada-U.S. trade," he wrote. "This builds on our recent constructive discussions on the outlines of a mutually beneficial trade deal that would create jobs for our workers, boost affordability for families, and fully respect Canada's languages, culture, and sovereignty. Our teams will now be working in the coming weeks to deliver that outcome."

What the two sides say they want

Carney said negotiators would work toward an agreement supporting employment and affordability while protecting Canadian sovereignty and cultural identity. The White House confirmed its willingness to continue discussions. No final terms for a new agreement have been announced.

The timing marks a change in position. On October 28, Carney said Canada was not in a position to reach a trade agreement before the US midterm elections. Four days later, he announced that the two countries would pursue one in the coming weeks.

How the talks broke down

Negotiations collapsed in August 2026. The breakdown came partly over Canada's demand to extend proposed US tariff exemptions to medium and heavy-duty vehicles. The two countries also clashed over allegations that Washington sought restrictions on French-language use, which the Trump administration denied.

After the August breakdown, Trump imposed 50 percent tariffs on around 20 billion dollars worth of Canadian goods, prompting Canada to retaliate. Since then, negotiators have discussed possible tariff relief for key Canadian exports including steel and automobiles, two sectors at the center of the dispute from the start.

Canada looks wider than Washington

The renewed talks with Washington are only one track. Carney has also sought to diversify Canada's trading relationships, and he hosted European Union representatives in Montreal last week. That wider push has run alongside the US file for months, as Ottawa works to reduce its exposure to a single market while it negotiates with its largest one.

What happens next sits with the negotiating teams. Carney's post says the teams will work in the coming weeks to deliver the outcome the two leaders discussed. Until terms are published, the agreement the two men announced on Sunday is a decision to negotiate, not a finished deal, and the tariffs imposed after the August breakdown remain the backdrop against which those talks will happen.