Carney says U.S. trade talks picked up after the collapse of the deal

what happened

Canadian Prime Minister Mark Carney said talks with the Trump administration on a revised cross-border trade pact have intensified slightly, though he played down the chances of an imminent agreement. Earlier, President Trump said at a Michigan rally that a deal could come soon, without giving details, and National Economic Council director Kevin Hassett also pointed to renewed talks. Carney stressed that Canada's position has not changed: it is ready to sign a fair pact, which must include U.S. tariff relief on steel, aluminum and automobiles. Talks collapsed in August amid mutual accusations of last-minute demands, after which both countries imposed extra duties on each other's goods. Trump has also vowed to double the existing tariff on Canadian-made vehicles to 50% starting January 1.

why it matters

For markets, the key question is whether Canada and the U.S. can reach a deal before the planned auto tariff increase takes effect. Prolonged trade tension keeps uncertainty elevated for the Canadian dollar and for automakers and steel producers that depend on cross-border supply chains.

market impact

CAD and USD/CAD: a drawn-out trade dispute adds volatility; automakers and steel under tariff pressure

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