U.S. President Donald Trump and Canadian Prime Minister Mark Carney held discussions on Sunday, November 1, 2026, regarding trade between the two nations. Trump stated that he and Carney have developed a "concept" for a deal, while Carney described their conversation as building on constructive discussions on the outlines of a mutually beneficial trade deal.
The discussions occurred following months of trade disputes in which the United States and Canada applied billions of dollars in tariffs to each other's goods. While Trump recently suggested a deal was forthcoming, Canada had previously reported limited progress in negotiations, despite efforts to ease tariffs on steel and automotive products.
Trump told reporters in Dubuque, Iowa, that the proposed agreement would include the revival of the Keystone XL pipeline, a project that was canceled in 2021 when former President Joe Biden revoked a key permit. Trump stated that Canada would pay for the pipeline and that the U.S. would provide the route. The original project was designed to transport 830,000 barrels of oil per day from Alberta to Oklahoma and the Gulf Coast.
The scale of the energy portion of the deal involves the transport of hundreds of thousands of barrels of oil daily. While Keystone XL remains inactive, the Canadian company South Bow has proposed a separate "Prairie Connector" project in partnership with U.S.-based Bridger Pipeline. This 550,000-barrel-per-day project would utilize some existing Keystone XL infrastructure on the Canadian side of the border. For residents in the affected regions, the outcome of these talks could eventually influence local employment in the energy sector and the cost of goods affected by cross-border tariffs.
The immediate focus now shifts to the technical teams from both countries who, according to Carney, will work over the coming weeks to deliver an outcome. South Bow is expected to make a final decision on the Prairie Connector project by 2027, though no specific deadline for the broader U.S.-Canada trade deal has been established.