US President Donald Trump said the United States and Canada have reached a trade agreement following what he described as a positive conversation with Canadian Prime Minister Mark Carney, bringing an end to weeks of tense negotiations over a threatened new round of tariffs.
Trump said the agreement would remove tariffs on goods entering Canada and described the pact as a “very good” deal for both countries.
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He said Canada would make concessions in agriculture and manufacturing, while Washington would reduce certain tariffs on Canadian products.
The agreement follows a last-minute push by both sides after Trump had threatened to impose new levies on a wide range of Canadian goods from Aug. 19. Senior US and Canadian trade officials met in Washington on Wednesday as the two countries worked to finalise the terms.
Carney said substantial progress had been made, while acknowledging that important work remained.
The two leaders spoke twice this week as negotiators sought to bridge differences that had persisted since July.
The deal is expected to provide broader access for US goods to the Canadian market, alongside commitments on economic security and digital trade.
It also includes provisions aimed at protecting American workers and domestic markets.
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Trump has separately suggested that the agreement could pave the way for the revival of the Keystone XL pipeline, a long-delayed project designed to transport Alberta oil to the United States.
The proposed pipeline, which could carry about 8,30,000 barrels of oil a day, has faced longstanding opposition from environmental and Indigenous groups.
The agreement marks a significant de-escalation in trade tensions between two of the United States' largest trading partners, after days of uncertainty over the economic impact of the threatened tariffs.
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