Source : Reuters
DUBUQUE, Iowa, November 1 – US President Donald Trump said on Sunday that his administration has the “concept” of a new trade deal with Canada that would include the long-stalled Keystone XL oil pipeline, a day after speaking with Canadian Prime Minister Mark Carney.
Reuters reported on X early on November 2, 2026, Malaysia time, that Trump had floated the concept of a US-Canada deal including a pipeline after his conversation with Carney. Speaking to reporters in Dubuque, Iowa, Trump said: “We have the concept of a deal that’s going to be great for our farmers, great for our country, and it will be fine for Canada,” CBC News reported.
‘They’re going to pay for it’
Trump said the scope of an agreement would include the Keystone XL pipeline, a project to carry Canadian crude to the United States that former President Joe Biden cancelled 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,” he said, according to the Union Leader and StreetInsider, which carried the remarks. He did not give further details of the proposed agreement, The Globe and Mail reported.
Carney said on X earlier on Sunday that he had had a “good conversation” with Trump on the future of Canada-US trade. He said the exchange built on “recent constructive discussions” over the outlines of a mutually beneficial trade deal that would create jobs for workers, boost affordability for families and “fully respect Canada’s languages, culture, and sovereignty”. “Our teams will now be working in the coming weeks to deliver that outcome,” he wrote.
A White House spokesperson said in a statement that “the Trump Administration welcomes continued engagement with Canada as we work toward finalizing the details of a deal that will deliver meaningful results for the American people,” CBC News reported.
Formal talks expected to resume
A source familiar with the matter told The Globe and Mail that the leaders spoke on Saturday, that Trump ordered his team to resume formal talks and that negotiations were expected to begin within days. Another senior Canadian source told CBC News it was still unclear what form the talks would take. A source quoted by Radio-Canada said “key elements” remained unresolved: “We are not on the verge of an agreement just yet.”
The two neighbours have been locked in a bitter trade dispute. Talks broke down in August, mainly over car trade, prompting both countries to impose steep duties on each other, and autos are expected to remain a key sticking point, CBC News said. Carney told reporters on Wednesday that Canada was not yet in a position to agree to a deal and would only accept one in Canadians’ interests.
Midterm backdrop
The call came just days before the US midterm elections on Tuesday, November 3. Trump and senior US officials have suggested in recent weeks that progress was being made, but sources told CBC News that Canadian officials had been telling industry groups a deal was unlikely before the vote. The Associated Press said both countries are seeking to resolve their bitter trade dispute.
Carney’s office did not immediately respond to requests for comment on Trump’s pipeline remarks. Trump had said the previous week that a trade deal with Canada was coming soon, while Ottawa had reported limited progress in talks aimed at easing tariffs on steel and autos. LNA will continue to follow developments.
Credit : Reuters’ X, with reporting from CBC News, The Globe and Mail and the Associated Press.
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