US President Donald Trump has said his administration has developed the concept of a new US-Canada trade deal, with the proposed agreement potentially involving the revival of the controversial Keystone XL pipeline.
Speaking to reporters in Dubuque, Iowa, on Sunday, Trump described the discussions with Canadian Prime Minister Mark Carney as positive and said the proposed agreement would benefit American farmers and the wider US economy.
"We have the concept of a deal that's going to be great for our farmers, great for our country, and we'll be fine for that," Trump said.
Carney also described his recent conversation with Trump as constructive. In a post on X, the Canadian prime minister said the exchange had built on discussions about the outlines of a mutually beneficial trade agreement.
He said the proposed deal would create jobs, improve affordability and respect Canada's languages, culture and sovereignty. Carney added that negotiating teams from both countries would work over the coming weeks to deliver the proposed outcome.
Keystone XL Pipeline Could Return
Trump said the proposed agreement would include the Keystone XL pipeline, a major energy infrastructure project that was cancelled by former US President Joe Biden in 2021.
"They're going to build the Keystone Pipeline. They're going to pay for it. We're going to give them the route, and it's largely been determined," Trump said.
However, Carney's office did not immediately respond to a request for comment on Trump's remarks about the pipeline. The Canadian government's position on the proposed revival was therefore not immediately clear.
Tariff Dispute Continues Between Neighbours
The discussions come amid an escalating trade dispute between the United States and Canada. Both countries have imposed billions of dollars in tariffs on each other's goods in recent months, creating uncertainty for businesses and industries dependent on cross-border trade.
The tariffs have also become a political issue in northern US border states, including Michigan and Maine, ahead of Tuesday's US midterm elections.
Trump said last week that an agreement with Canada was expected soon. However, negotiations had previously made limited progress, despite efforts to reduce tariffs affecting sectors such as steel and automobiles.
The latest discussions could provide a path towards easing trade tensions, although the details of any agreement and the future of the Keystone XL project remain subject to negotiations.
Official Link: Government of Canada
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