OTTAWA
Prime Minister Mark Carney says he had a "good conversation" with U.S. President Donald Trump on the future of Canada-U.S. trade, with formal negotiations set to resume in the coming weeks.
Carney said in a social media post Sunday that the conversation builds on recent constructive discussions about a possible trade deal.
"Our teams will now be working in the coming weeks to deliver that outcome," he said.
A senior source told CBC News that autos are expected to be a key sticking point, as they were last time in August before trade talks fell apart.
A spokesperson for the Prime Minister’s Office said the conversation between the leaders took place on Saturday.
Carney described the possible deal as one that would "create jobs for our workers, boost affordability for families, and fully respect Canada’s languages, culture and sovereignty."
The conversation comes ahead of Tuesday’s midterm elections in the United States, where the ongoing Canada-U.S. trade dispute has emerged as a key issue among some candidates.
At a news conference Sunday, Conservative Leader Pierre Poilievre encouraged Carney to "get a great deal." He said everyday Canadians can’t afford to wait for a trade deal with the U.S.
"The prime minister promised in the last election he would get an even better deal than we had before. He’s broken that promise so far," he said. "It’s time for Mr. Carney to put the big talk in the past and deliver real results."
Carney told reporters last week that Canada was not yet in a position to reach a trade deal with Trump’s administration.
On his way into the weekly Liberal national caucus meeting on Parliament Hill, Carney said on Wednesday that Ottawa was prepared to make a deal only when it suits Canadians’ interests.
Sources told CBC News last month that Canadian government officials have been informing industry groups a deal was unlikely before Tuesday’s vote.
Sources also told CBC News that trade talks have intensified in recent weeks, but the conversations did not mean an agreement was imminent.
A source familiar with the discussions told Radio-Canada that "key elements" of the discussions remain unresolved and said, "We are not on the verge of an agreement just yet."
e2gold.ca reported last week that the White House has shown increased interest in a deal, with auto tariffs a key sticking point.
August collapse
After a flurry of negotiations in August, Canadian and American negotiators ultimately could not come to an agreement.
In the following weeks, Carney said one of the main reasons he walked away was because Washington demanded terms that would "destroy" big Canadian industries, including auto, steel and aluminum sectors.
U.S. Commerce Secretary Howard Lutnick claimed that Canadian negotiators only brought up tariff relief on medium- and heavy-duty trucks at the last minute, and further alleged the Canadians did so to kill the deal.
Canada's chief U.S. trade negotiator, Janice Charette, said the Canadians raised the issue on "Monday, Tuesday, Wednesday and Thursday."
Carney has also said that at the last minute, the U.S. took issue with Canadian rules that ensure French language content is easy to find on streaming platforms, and that the Americans tried to restrict Canada's ability to strike trade deals with other countries.
Lutnick and U.S. Trade Representative Jamieson Greer quickly pushed back on Canada's claims about French language discoverability, arguing the U.S. would not jeopardize a deal over that issue.
As for restrictions on Canada's future trade deals, Greer told CBC News in August that there was no requirement in the text, but rather the U.S. sought to discuss how Canada could align its tariffs so it doesn't become a back door for steel and aluminum from other countries.
A source has previously told CBC News that the U.S. wanted Canada to apply sectoral tariffs, primarily on steel and aluminum, to its trading partners, while countries that have a free trade deal with Canada would face tariffs on imports above 2025 levels.
In response to the August collapse, Washington imposed tariffs on billions of dollars in Canadian goods, and Ottawa followed up with retaliatory tariffs on American products.
Trump recently announced he would lift some of the 50 per cent tariffs on Canada at the end of October, while adding tariffs to dozens of new products, including Canadian garbage and sewage.
This story was written by the e2gold.ca newsroom from reporting by The Globe and Mail, CBC News, CityNews and CTV News. Quotes are checked word for word against that reporting.