Canadian Prime Minister Mark Carney says Canada and the United States are making progress toward a possible trade agreement following a lengthy conversation with U.S. President Donald Trump. However, the Canadian leader has cautioned that the two countries have not yet reached a final deal.
Speaking to reporters in Manila, Philippines, on Saturday, November 14, Carney described his conversation with Trump as long and substantive. He said the discussion took place shortly before he left for his international trip and included senior officials from both governments.
“We are making progress. There is the possibility of a deal, a bilateral deal. But we’re not yet there,” Carney said.
The comments have renewed attention on the Canada-US trade deal after negotiations collapsed in August and Washington imposed additional tariffs on certain Canadian products.
The two countries have since resumed discussions, but major disagreements remain. Canada’s auto industry, tariffs on industrial products, and broader economic interests are among the issues shaping the negotiations.
Carney Says Canada and US Are Moving Toward Possible Agreement
Carney’s latest comments suggest that communication between Washington and Ottawa has continued despite the breakdown in negotiations earlier this year.
The Canadian prime minister said he held a substantial conversation with Trump before departing for Europe and Asia. U.S. Trade Representative Jamieson Greer and White House Chief of Staff Stephen Miller also participated in the discussion, according to reporting by the Associated Press.
Although Carney described the talks positively, he did not announce a signed agreement, a final negotiating framework, or a specific date for completing negotiations.
His statement indicates that a potential bilateral agreement remains possible, but the two governments still need to resolve outstanding issues.
The negotiations are particularly important because Canada and the United States maintain one of the world’s largest trading relationships. Businesses on both sides of the border depend on cross-border supply chains, manufacturing partnerships, transportation networks, and access to customers.
A new agreement could provide greater certainty for companies that have faced changing tariff rules and higher costs.
Why the August Trade Negotiations Collapsed
The latest discussions follow a major breakdown in Canada-US trade negotiations in August 2026.
The disagreement intensified after the Trump administration announced additional 50% tariffs on certain Canadian goods. Washington defended the measures by citing concerns about Canadian trade practices and restrictions affecting American commerce.
Canada rejected the U.S. demands and responded with its own trade measures.
Carney had previously warned that Ottawa would retaliate dollar for dollar if Washington imposed additional tariffs. The dispute escalated when negotiations failed to produce an agreement before the August deadline.
According to reporting by the Associated Press, the United States subsequently imposed 50% tariffs on about $20 billion worth of Canadian goods. Canada announced retaliatory tariffs in September.
The measures added pressure to an already important economic relationship.
For Canadian manufacturers, exporters, and suppliers, uncertainty over tariffs can make it more difficult to plan production, negotiate contracts, and determine prices.
American companies that depend on Canadian materials and products can also face higher costs when trade restrictions disrupt established supply chains.
Canada’s Auto Industry Remains a Major Negotiating Issue
One of the most important issues in the Canada-US trade negotiations is the future of Canada’s automobile industry.
Carney has made clear that Ottawa will not accept an agreement that undermines the country’s automotive sector.
The auto industry is deeply integrated across North America. Vehicles and components often cross the US-Canada border several times during manufacturing before reaching consumers.
Tariffs can increase the cost of imported parts, disrupt production schedules, and affect the competitiveness of manufacturers operating in both countries.
Canadian auto plants also depend on access to the American market, which remains a major destination for vehicles and automotive components.
Carney’s position suggests that protecting jobs, manufacturing investment, and the industry’s long-term competitiveness will remain important conditions in any potential agreement.
The issue is not limited to Canadian companies. American automakers and suppliers also rely on cross-border production networks.
A prolonged trade dispute could therefore affect manufacturers, workers, suppliers, dealerships, and consumers in both countries.
How US Tariffs Could Affect Businesses and Consumers
The Canada-US trade dispute has consequences beyond government negotiations.
Tariffs can increase the cost of imported products and materials. Businesses may respond by absorbing some of the additional expense, changing suppliers, adjusting production, or passing higher costs to customers.
Industries that depend on cross-border trade are particularly exposed.
Steel and aluminum are important examples because they are used in automotive manufacturing, construction, machinery, infrastructure, and other industrial activities.
If tariffs remain in place, manufacturers may face additional expenses when purchasing materials from across the border.
Companies could also delay investment decisions while waiting for greater clarity about future trade rules.
For consumers, the effects may appear through higher prices for certain products or services. However, the actual impact depends on the product, its supply chain, the applicable tariff exemptions, and how businesses respond.
A successful agreement could reduce uncertainty and potentially lower some trade costs. It would not automatically eliminate every tariff or guarantee lower prices across the economy.
Why Canada Cannot Ignore Its Dependence on the US Market
The United States remains Canada’s largest trading partner by a substantial margin.
According to figures cited by The Washington Post, approximately 72% of Canadian exports in 2025 went to the United States.
That dependence gives Washington significant influence over Canada’s export economy.
For Canadian businesses, access to American consumers is essential in sectors ranging from energy and manufacturing to agriculture and automotive production.
However, the recent trade dispute has highlighted the risks of relying too heavily on one international market.
Carney’s government is therefore pursuing a broader trade strategy designed to increase Canada’s economic relationships with countries outside the United States.
The objective is not necessarily to replace American trade. Instead, Ottawa wants additional export destinations and commercial partnerships that could provide more flexibility during future disputes.
Carney Expands Canada’s Trade Strategy Across Asia
While discussing progress with Trump, Carney also announced developments in Canada’s trade negotiations with Asian partners.
During his visit to Manila, the prime minister said Canada had substantially concluded free-trade negotiations with the Association of Southeast Asian Nations, commonly known as ASEAN.
The bloc represents 11 countries and a combined population of approximately 700 million people.
Carney also announced that Canada had completed separate free-trade negotiations with the Philippines.
Both developments are part of Ottawa’s strategy to build a wider network of international trade partners.
The Canadian government expects the ASEAN agreement could add nearly C$2 billion to the country’s economy and create almost 14,000 jobs, particularly in agriculture and manufacturing.
The Philippines agreement is also expected to create additional opportunities for Canadian exporters.
According to the Associated Press, the proposed agreement covers more than 90% of tariff lines. Canadian officials believe it could help triple Canadian exports to the Philippines by 2035.
These agreements are expected to be signed next year, subject to the remaining processes.
Why ASEAN Matters to Canadian Exporters
ASEAN provides Canadian businesses with access to a large and diverse regional market.
Its member countries include major economies and rapidly developing markets across Southeast Asia.
For Canadian exporters, stronger trade relationships could create opportunities in agriculture, food products, manufacturing, technology, natural resources, and services.
The region’s growing consumer markets may also help Canadian companies diversify their customer base.
A broader trade network could make Canada’s economy less vulnerable to sudden policy changes involving any single trading partner.
However, building new trade relationships takes time. Businesses must establish distribution networks, understand local regulations, compete with existing suppliers, and develop long-term commercial partnerships.
Consequently, the ASEAN negotiations are a long-term economic strategy rather than an immediate replacement for Canadian exports to the United States.
What a Canada-US Trade Agreement Could Mean for North America
A new bilateral agreement could help stabilize one of the world’s most important economic relationships.
For businesses, clearer trade rules could make it easier to plan investments, manage supply chains, and negotiate cross-border contracts.
Automotive manufacturers could benefit from greater certainty around tariffs and the movement of parts and finished vehicles.
Steel and aluminum producers could also gain from changes to trade restrictions, depending on the final terms.
Consumers could benefit if lower trade costs eventually reduce expenses for certain products. However, any price changes would depend on the details of the agreement and broader market conditions.
A deal could also improve cooperation between the two governments after months of trade tensions.
Still, the outcome remains uncertain.
Carney has emphasized that Canada will not accept terms that damage its auto industry. Washington, meanwhile, has maintained its position on several trade concerns.
The final agreement will depend on whether both sides can find acceptable compromises.
What Happens Next in the Canada-US Trade Talks?
The next stage will involve continued discussions between Canadian and American officials.
Carney’s latest comments indicate that a bilateral agreement remains possible, but neither government has announced a completed deal.
Important questions remain about tariffs, automotive manufacturing, industrial trade, and the conditions each country expects from the other.
Businesses and investors will be watching for announcements that clarify whether negotiations are moving toward a formal agreement.
Canada will also continue developing its trade relationships in Asia as part of its effort to diversify exports.
The November 14 announcement represents a positive signal for negotiations, but it should not be interpreted as confirmation that the trade dispute has ended.
For now, Canada and the United States are still working toward an agreement that both governments can accept.
Frequently Asked Questions About the Canada-US Trade Deal
Did Mark Carney reach a trade deal with Donald Trump?
No. Carney said Canada and the United States were making progress toward a possible bilateral agreement, but he confirmed that the two countries had not yet reached a deal.
When did Mark Carney speak with Donald Trump?
Carney said he had a lengthy conversation with Trump shortly before leaving for his international trip. He discussed the conversation with reporters in Manila on November 14, 2026.
Why did Canada-US trade negotiations collapse in August?
Negotiations broke down after disagreements over U.S. trade demands. Washington subsequently imposed additional 50% tariffs on certain Canadian goods, and Canada responded with retaliatory measures.
What is Canada’s biggest concern in the negotiations?
Carney has specifically emphasized protecting Canada’s automotive industry. Ottawa does not want an agreement that undermines its vehicle manufacturing sector.
How much of Canada’s exports go to the United States?
Approximately 72% of Canadian exports went to the United States in 2025, according to figures cited by The Washington Post.
Is Canada negotiating trade agreements with Asian countries?
Yes. Carney announced that Canada had substantially concluded free-trade negotiations with ASEAN and completed separate negotiations with the Philippines. Both agreements are expected to be signed next year.
Could a Canada-US trade deal lower prices?
A deal could reduce some tariffs and trade costs, potentially benefiting businesses and consumers. However, lower prices are not guaranteed and would depend on the final agreement and market conditions.
Sources and Further Reading
- Associated Press: https://apnews.com/article/00dea030028a7c221840458b25469e02
- Reuters: https://www.investing.com/news/economy-news/canada-us-make-progress-on-trade-deal-carney-says-5027146
- Congressional Research Service: https://www.everycrsreport.com/files/2026-11-02_R49349_9da04565cb1ee103ca6f0d700b7f7bf9ee4d3ffb.pdf