By: Ebenezer Adugyamfi & Emmanuel Ayiku for GhanaianNewsCanada
November 4, 2026
United States President Donald Trump has indicated that Washington is close to reaching a new trade agreement with Canada, as negotiations between the two neighboring countries gain momentum following months of disagreements over tariffs, economic policies and Canadian sovereignty.
Trump made the remarks on Tuesday, November 3, during an interview with Fox News, expressing confidence that an agreement could be finalized soon.
“Canada is very good; we’re going to make a deal with Canada very soon. We’re going to make a great deal,” the US president said.
His comments came as Canadian Prime Minister Mark Carney confirmed that discussions between the two governments had become more intensive, following a recent telephone conversation with Trump.
However, while the American president projected confidence about the possibility of a deal, Carney maintained that negotiations were still ongoing and that significant work remained before an agreement could be concluded.
Speaking to reporters in St. John’s, Antigua and Barbuda, where he was attending the Commonwealth Heads of Government Meeting, Carney said Washington had become more flexible on some of the issues that previously threatened to derail negotiations.
“We’ve made progress, but we haven’t finished,” he said.
Describing the changing position of American negotiators, Carney added: “They’re asking less and they’re offering more, but we’re not quite there.”
Carney says US has softened some demands
The latest progress follows the collapse of formal trade negotiations in August, when Canada withdrew from discussions after disagreements over American demands that Ottawa considered unacceptable.
Among the contentious issues were proposals that Canada said could restrict its ability to negotiate trade agreements with other countries, weaken protections for French-language content and negatively affect its automotive industry.
Carney had insisted that Canada would not accept an agreement that compromised its sovereignty or undermined important domestic economic and cultural protections.
The prime minister’s latest comments suggest that Washington has since moved away from some of those demands.
He told reporters that certain Canadian concerns, particularly those relating to language, culture and Canada’s ability to independently pursue trade agreements, were no longer major obstacles in the negotiations.
Carney described the shift as welcome but made clear that the two countries had not resolved every disagreement.
The automotive sector remains an important area to watch, with the industry having featured prominently in previous disagreements between Ottawa and Washington.
Trump outlines possible benefits for American farmers
Trump has also offered some indication of what his administration hopes to achieve through a potential agreement.
Speaking to reporters in Iowa on Sunday, November 1, the president said he had discussed trade with Carney and that both governments had developed what he described as the concept of a mutually beneficial agreement.
“We have the concept of a deal that’s going to be great for our farmers, great for our country and it will be fine for Canada too,” Trump said.
He specifically mentioned American farmers, suggesting that the proposed arrangement could eliminate tariffs on certain agricultural products exported to Canada.
Trump also referred to the Keystone XL pipeline as part of the discussions.
However, his comments did not establish that Canada had accepted these proposals or that the pipeline had become an agreed condition of a trade deal.
Neither government has publicly announced a completed agreement containing those terms.
The difference between Trump’s public description and Carney’s more cautious assessment highlights the need for further negotiations before the details of any agreement can be confirmed.
How the trade dispute escalated
The latest negotiations follow months of economic tension between the United States and Canada.
The relationship deteriorated after the Trump administration-imposed tariffs on Canadian products, prompting Ottawa to introduce retaliatory measures against selected American imports.
In August, negotiations broke down after Canada objected to American demands that Carney said threatened important national interests.
The breakdown resulted in further tariff measures affecting Canadian goods, including products from important industrial sectors.
The dispute has created uncertainty for businesses operating across the border, particularly manufacturers and companies whose supply chains depend on the movement of goods between the two countries.
Canada and the United States maintain one of the world’s most significant bilateral trading relationships, with businesses, workers and consumers on both sides depending heavily on cross-border commerce.
For Canada, maintaining access to the American market is particularly important because of the close integration of its manufacturing, automotive, agricultural and energy industries with the US economy.
Trade tensions become an issue in US politics
The disagreement has also attracted political attention in the United States, particularly in states with strong economic connections to Canada.
States such as Michigan and Maine have significant cross-border commercial interests, making tariffs and trade restrictions important issues for businesses and workers.
The negotiations have unfolded against the backdrop of the November 3 US midterm elections, with trade policy forming part of the wider political debate surrounding the Trump administration.
For American farmers and manufacturers, the possibility of reducing trade barriers could provide relief from additional costs and uncertainty.
For Canadian businesses, however, the priority remains securing an agreement that protects access to the US market without requiring Ottawa to surrender control over its economic and national policies.
Carney pursues wider trade relationships
While seeking a resolution with Washington, Carney’s government has also continued efforts to strengthen Canada’s economic relationships with other international partners.
The prime minister has repeatedly emphasized the importance of diversifying Canada’s trade relationships and reducing excessive dependence on a single market.
Canada’s engagement with European and other international partners forms part of that broader economic strategy.
The negotiations with the United States therefore carry implications beyond the immediate question of tariffs. They also touch on Canada’s ability to maintain an independent trade policy while protecting its domestic industries.
Carney is expected to meet Trump later in November at the Asia-Pacific Economic Cooperation summit in China, providing another opportunity for the two leaders to discuss bilateral relations.
What happens next?
Both governments have signaled a willingness to continue negotiations, but the timing and final terms of a potential agreement remain uncertain.
Trump’s latest remarks indicate that his administration believes a deal is within reach, while Carney’s comments suggest that Canada is determined to secure acceptable terms before making a commitment.
For now, no final trade agreement has been announced.
The coming weeks will be important in determining whether the renewed discussions can resolve the outstanding disagreements over tariffs, automobiles, agriculture and Canada’s economic sovereignty.
For Canadian businesses and workers, the central question is whether the two governments can turn the recent diplomatic progress into an agreement that provides greater certainty for trade and investment across the border.
