U.S., Canada Target New Trade Deal Amid Tariff Tensions

President Donald Trump and Canadian Prime Minister Mark Carney met at the White House on Tuesday to make headway in negotiations toward a new trade agreement between the United States and Canada.

The meeting came amid tensions over tariffs and market access, as both leaders worked to reset their economic relationships.

Trump described the U.S.–Canada trade relationship as “complicated—maybe the most complicated of any we have,” emphasising that the economies of both nations’ are connected and are in a natural rivalry.

“There’s a natural conflict between the U.S. and Canada, but also a natural love. We want Canada to do great, but we also want to do great ourselves,” he said from the Oval Office.

Carney, who took office earlier this year, expressed confidence that the two allies could reach a fair and sustainable agreement.

“We’re going to get the right deal. There are some areas where we compete, but in many more, we’re stronger together,” Carney said.

Trade tensions have intensified since August, when the Trump administration raised tariffs on Canadian goods to 35 percent. Canada responded with countermeasures targeting U.S. goods.

Trump, however, suggested that negotiations were progressing, hinting at a potential breakthrough.

“I think the Canadians are going to walk away very happy,” he told reporters.

BBC reports that the talks covered a wide range of issues, from agricultural market access and dairy supply management to energy exports and the future of the U.S.–Mexico–Canada Agreement (USMCA).

Trump reiterated his openness to renegotiating the trade deal, saying, “I don’t care if it’s one deal or three, I just want the best deal for this country, and also very much with Canada in mind.”

Beyond trade, Carney commended Trump’s push for stronger regional cooperation on border control and anti-drug enforcement, particularly efforts to combat the fentanyl crisis.

Trump praised both Canada and Mexico for “tougher enforcement” in recent months, saying joint efforts had “probably saved at least 100,000 lives.”

The Oval Office meeting also touched on international conflicts as Trump said a peace deal to end the Gaza conflict was “very close,” adding that “literally every country” supports his plan.

Regarding negotiations with Russian President Vladimir Putin, Trump noted that talks over Ukraine had proven “the tougher one.”

Carney voiced support for Trump’s diplomatic efforts in the Middle East, calling them “transformative steps toward lasting stability.”