Trump says U.S., Canada have the 'concept of a very good deal'

U.S. President Donald Trump says Canada and the United States have "the concept of a very good deal."

Speaking to reporters in Iowa on Sunday, Trump said the countries were "very close" to reaching a trade deal.

"We've been losing money for many years with Canada," he said. "We have the concept of a deal that's going to be great for our farmers, great for our country and it'll be fine for Canada too."

Prime Minister Mark Carney said on social media Sunday that he had a "good conversation" with Trump on the future of trade between the two countries.

A spokesperson for the Prime Minister's Office said the conversation between the leaders took place on Saturday. 

Carney said the conversation builds on previous ones they have had about what a mutually beneficial trade deal looks like. He said such a deal would create jobs for workers, improve affordability for families, and respect Canada’s languages, culture and sovereignty.

"Our teams will now be working in the coming weeks to deliver that outcome," he said. 

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.

Trump told reporters on Sunday the Keystone XL pipeline project was part of the negotiations, adding that Canada would pay for "all of it."

"We're going to give them the route, and it's largely been determined but they'll build the Keystone pipeline," said Trump. 

Trump boasted in August about reviving the Keystone XL pipeline project, touting it as a win in trade negotiations with Canada. At the time, Trump posted on his Truth Social platform that Canada and the U.S. “have a DEAL!”

A subsequent post showed a rendering of the president yanking a pipeline out of the ground beside a tombstone labelled “buried by Biden” and alongside another sign reading “Keystone Pipeline. Completely Free. Energy. Jobs. America First.”

Keystone XL, which could bring more than 800,000 barrels of additional oil from Alberta to the U.S., was proposed almost 20 years ago. But after years of challenges from U.S. landowners, Indigenous leaders in both countries, and environmental groups, former U.S. president Joe Biden killed it by revoking a key U.S. permit in 2021.

Almost a year ago, Carney raised with Trump the prospect of reviving the project, as part of a larger pitch to link energy co-operation and support for Canada’s steel and aluminum sectors. Trump signed an executive order in April to approve a new pipeline which would utilize existing portions of the abandoned Keystone project.

At a press 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."

Tuesday's midterm election brings high stakes for both Republicans and Democrats. A Democrat wave could see a Congressional check to Trump's unprecedented use of executive powers during the remainder of his tenure.

Polling shows Democrats are favoured to take the House, where a net gain of three seats would give them a majority. The future of the Senate is less clear, where some polling shows a Democrat net gain of four seats is within reach.

While Trump's first term rattled the bilateral relationship between Canada and the U.S., his second term blew it up. Canada was an early target of Trump's tariffs and Canadians were shocked and appalled by the president's repeated threats of annexation.

Tensions escalated further in August when trade talks collapsed. Trump slapped an array of Canadian goods with 50 per cent tariffs, banned imports of other Canadian products and signed an executive order to rename Lake Ontario as Lake America.

The trade war is deeply unpopular in states like Michigan and Maine, where tight Senate races ultimately could decide which party gains congressional control.

But even if Democrats emerge triumphant this week, or win the White House in 2028, it's not clear that Trump's tariff wall would suddenly drop.

Carney said 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.

This report by The Canadian Press was first published Nov. 1, 2026.

--With files from Fakiha Baig, Nick Murray and Kelly Geraldine Malone

By Catherine Morrison | Copyright 2026, The Canadian Press. All rights reserved.