Trump says US-Canada trade deal concept includes Keystone XL pipeline

US President Donald Trump on Sunday said his administration has the "concept" of a new trade deal with Canada, as Canadian Prime Minister Mark Carney described their recent conversation as constructive amid an ongoing trade dispute between the two countries.

"We have the concept of a deal that's going to be great for our farmers, great for our country, and we'll be fine for that," Trump told reporters in Dubuque, Iowa, referring to his conversation with Carney a day earlier.

Carney, in a post on X earlier on Sunday, said the exchange had "built on recent constructive discussions on the outlines of a mutually beneficial trade deal". He said the proposed agreement would create jobs, improve affordability and fully respect Canada's languages, culture and sovereignty.

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

Trump also said the proposed agreement would involve the Keystone XL pipeline, a controversial project that was cancelled by former US President Joe Biden 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," Trump said.

Carney's office did not immediately respond to a request for comment on Trump's remarks about the pipeline.

The United States and Canada have imposed billions of dollars in tariffs on each other's goods in recent months, escalating tensions between the two neighbouring trading partners.

The tariffs have also become an issue in northern US border states, including Michigan and Maine, ahead of Tuesday's US midterm elections.

Trump said last week that a trade agreement with Canada was expected soon. However, Canada had previously reported limited progress in negotiations, despite efforts by both sides to ease tariffs on steel and automobiles.- Ends