Carney and Trump Signal Progress Toward a New U.S.-Canada Trade Deal That Could Include Keystone XL

SentiSense · Published Nov 1, 2026, 1:44 PM ET · Updated Nov 2, 2026, 8:41 AM ET

Canadian Prime Minister Mark Carney said he had a good conversation with President Donald Trump and that both teams will work in the coming weeks toward a trade deal. Trump said the countries have the concept of a deal and that Canada would pay to build the Keystone XL pipeline. Talks collapsed in August, after which Trump imposed 50% tariffs on a range of Canadian goods.

Trade talks between the U.S. and Canada are back on. Prime Minister Mark Carney said on November 1 that his call with President Donald Trump "builds on our recent constructive discussions on the outlines of a mutually beneficial trade deal," and that "our teams will now be working in the coming weeks to deliver that outcome". Carney's office said the call took place on Saturday, October 31.

Trump, speaking to reporters in Dubuque, Iowa, said "we have the concept of a deal that's going to be great for our farmers, great for our country". He said the deal would include the Keystone XL pipeline, which Canada would pay to build. Reuters noted it was not immediately clear how the project would be revived after a key permit was revoked in 2021.

The backdrop is a hard reset. Talks collapsed in August over extending tariff relief to medium- and heavy-duty vehicles, after which Trump imposed 50% tariffs on an array of Canadian goods. Carney struck a measured tone, saying he has "very clear bottom lines, red lines." Neither side has said whether steel or auto tariff relief is part of the new concept.

What to watch: whether formal negotiations start within days, as a source told the Globe and Mail, and whether any tariff relief is announced. The trade war is unpopular in border states such as Michigan and Maine ahead of the November 3 U.S. midterm elections, which adds political pressure for progress.