Summary

  • Donald Trump says the US and Canada have "natural conflict" on trade, as he hosts the country's Prime Minister Mark Carney at the White House

  • Speaking in the Oval Office, Carney says "we're going to get the right deal" - he's under pressure domestically to reach an agreement lower tariffs

  • Will Carney leave the White House empty handed? "I think they are going to walk away very happy," Trump says

  • In August, Trump increased tariffs on Canadian goods to 35%, but many are exempt under the current free trade deal. Canada then retaliated with its own tariffs on US exports

Media caption,

Trump says US and Canada have 'natural conflict' on trade

  1. Hints of positivity for Canada as ‘complicated’ trade talks continuepublished at 19:08 BST 7 October

    Nadine Yousif
    Senior Canada reporter

    President Trump spoke of "mutual love" between Canada and the US in the Oval Office earlier, saying that the "people of Canada will love us again" once details of a trade deal between the two countries are revealed.

    So far, those details remain vague, but there were some hints of positivity today.

    First, Trump acknowledged that trade talks with Canada are "more complicated than maybe any other agreement" the US has with other nations, in part because of the two countries' competing business interests and geographical proximity.

    He said, however, that he wants "Canada to do well," in specific reference to the auto manufacturing sector.

    Trump also appeared pleased with Canada's record so far on fentanyl trafficking, saying the country has "worked hard and they've done a much better job than in the past."

    Fentanyl has been used as justification for the steep 35% tariffs imposed on Canadian goods not covered by the North American Free Trade Agreement.

    It is unclear if any deal will be reached today, and both US and Canadian officials have played down expectations of a breakthrough.

    But the upbeat mood between the two leaders suggests that Canada and the US are closer than they were some weeks ago to working out their differences.

    We’re ending our live coverage of Carney’s visit to the White House now, but you can read more in our news story.

  2. What Carney and Trump said about trade deal before their closed-doors meetingpublished at 18:56 BST 7 October

    Mark Carney laughing in the Oval Office as he sits next to President TrumpImage source, EPA

    Trade was a key aspect of the questions fielded by President Trump and Mark Carney in the Oval Office a little while ago.

    Here are some of the key lines we heard from each leader:

    Trump:

    • The president said the pair would discuss tariffs, but did not specify whether he would remove those currently in place on Canada
    • He added that negotiations with Canada were more complicated than with any other country because they have a "natural conflict" and "compete" for the same business
    • But he did say that Canada would "walk away very happy" after the talks, and that "the people of Canada will love us again"
    • Trump also suggested that a free trade agreement between Canada, the US and Mexico could be renegotiated

    Carney:

    • Asked why Canada had not reached a deal with the US to bring down tariffs - like the UK and European Union had - Carney said there were areas of competition where they would need to reach an agreement
    • But he said there were "more areas" where they were "stronger together" - to which Trump responded, "that's true"
    • The Canadian prime minister said: "We're going to get the right deal"
  3. What happens now?published at 18:36 BST 7 October

    Bernd Debusmann Jr
    Reporting from the White House

    Trump and Carney are now at a bilateral lunch alongside their two delegations.

    Once that lunch is done, Carney will leave. No further comments are expected, and we are unlikely to see Carney or Trump again after the two say goodbye at the Oval Office doors.

    The only other thing on Trump's schedule today is a meeting with Edan Alexander, an Israeli-American former hostage of Hamas.

    That will likely take place behind closed doors, meaning that we won't hear directly from Trump how the rest of his Carney meeting went - unless he posts on Truth Social.

  4. Trump asked several questions unrelated to US - Canada tradepublished at 18:21 BST 7 October

    President Trump, with his hand raised and finger pointed, takes questions from reporters in the Oval Office.Image source, Reuters

    Trump was also asked a series of questions ranging far beyond US - Canada relations.

    Here’s a quick look at some of the other things which were discussed:

    • Trump repeatedly raised the Middle East, where he said a Gaza peace deal was "very close" and that "literally every country" supports his plan to end the conflict
    • He added that reaching a deal with Vladimir Putin to end the fighting in Ukraine had turned out to be the "maybe tougher" negotiation
    • On workers being furloughed during the US government shutdown, Trump said there were "some people who really don't deserve to be taken care of"
    • Asked whether he would invoke the Insurrection Act to potentially deploy the National Guard to Portland, Oregon, he said this had been done before and, referencing Chicago, said that "if the governor can't do the job, we'll do the job"
  5. A cordial meeting, even with no trade agreement in sightpublished at 18:05 BST 7 October

    Bernd Debusmann Jr
    Reporting from the White House

    The public portion of the meeting between Mark Carney and Donald Trump has now ended.

    Both men were full of praise for one another, and the very fact that the meeting ended without any public disagreement - as we've seen in several other Oval Office encounters this year - will be seen as a victory by the Canadian delegation.

    And while both sides seem optimistic about the prospects of a deal, there are clearly still hurdles to be crossed, with Trump characterising the relationship between the two as "natural conflict" and those negotiations as "complicated".

    Trump, however, said he believed that the Canadians would leave Washington DC "happy", which bodes well for the future even if the two do not reach any firm agreements today, behind closed doors.

    Whether or not today's meeting will be enough to dissuade Carney's opposition from criticising his performance remains to be seen, but all in all this seems to have at least begun on a positive note.

  6. Trump: Carney is a nice man but he can be very nastypublished at 17:50 BST 7 October

    A wide shot of Carney and Trump sitting next to each other in the Oval Office, with other members of Trump's cabinet also present, including JD Vance and Marco RubioImage source, EPA

    Is there anything the Canadian PM has done this week to make negotiations more difficult, Trump is asked.

    Trump says Carney "is a nice man but he can be very nasty".

    "He is a world class leader," Trump adds. "He's a good man, he does a great job and he's a tough negotiator."

    If he's a "great man" and you want to do a deal with Canada, why don't you, Trump is asked.

    "Because I want to be a great man too," Trump replies, to laughter in the room.

    With that, the Q&A with the press ends. Stick with us for updates and analysis on the key lines.

  7. Trump on trade: 'People of Canada will love us again'published at 17:47 BST 7 October

    Trump and Canada laugh as they sit togetherImage source, Reuters

    Trump is asked what Canada is giving the US in exchange for "leaving happy."

    He responds by saying "you'll find out," and adds that "the people of Canada will love us again." Carney does not address the question.

    Asked whether a deal with Canada will include agreements on supply management in the dairy sector, Trump responds that it will include dairy, because the deal "will include everything."

  8. Trump suggests North America trade deals could be renegotiatedpublished at 17:44 BST 7 October

    Trump points to a member of the media off cameraImage source, Reuters

    On the North American free trade agreement between Canada, the US and Mexico (USMCA) Trump raises the possibility that separate deals could be renegotiated with each country, or the agreement could be reviewed altogether.

    Asked for his preference, Trump responds: "I don't care. I want to make whatever the best deal is for this country and also very much with Canada in mind."

    Trump is then asked about China. He says that he believes the US is "doing very well" with China and that he has a great relationship with President Xi Jinping. But he adds that to do well with China, "you have to compete".

    He also praises Canada's approach to China, saying "it is a very competitive country."

  9. 'We've got to stamp it out': Carney on fentanyl crisispublished at 17:42 BST 7 October

    Trump is asked: "Is the fentanyl crisis over at the border?"

    "No, I think it's never going to be over, frankly," Trump responds.

    He does, though, praise Canada, which he says has worked hard and "done a much better job than in the past".

    He says that he's worked with both Canada and Mexico to make the situation "a lot better".

    Carney then comments, saying any amount of fentanyl "is too much".

    He adds that his administration has cut its impact down "substantially" but adds: "We've got to stamp it out".

  10. Negotiations with Putin 'tougher' than Gaza peace talks - Trumppublished at 17:39 BST 7 October

    Trump turns back to the Middle East - where he says a peace deal to end the fighting in Gaza is "very close.

    He adds that reaching a deal with Vladimir Putin to end the war in Ukraine had turned out to be the "maybe tougher" negotiation.

  11. Trump asked about plans for 'golden dome' defence systempublished at 17:34 BST 7 October

    The next question from the press pack is on plans for a so-called golden dome.

    Trump says he and Carney "will be working together on a golden dome for the two countries" and says this is "going to be very important".

    • As a reminder, plans for a "golden dome" missile defence system were unveiled by Trump just days after returning to the White House in January
  12. Analysis

    Trump dominates - but says Canada to 'walk away very happy'published at 17:32 BST 7 October

    Bernd Debusmann Jr
    Reporting from the White House

    We've finally got a question for Mark Carney on why Canada is the only G7 country yet to reach a trade deal with Trump this year.

    It was the first question for Carney since the public portion of the Oval Office meeting began.

    But Trump quickly jumped in before Carney had a chance to answer.

    "They're not located right next to each other," Trump interjected, before Carney jumped in to speak about the scale of Canadian economic ties and investments in the US.

    A few moments later, Trump was asked whether Canada would leave empty handed today.

    "I think they're going to walk away very happy," he responded.

  13. Carney on trade: 'We're going to get the right deal'published at 17:31 BST 7 October

    The pair are next asked why the UK and EU have reached deals with the US to bring down tariffs, but not Canada.

    Trump says the countries are further away, which can make things easier.

    Carney then comes in, emphasising that Canada and the US are cooperating on trade and have a significant trading relationship.

    He echoes Trump's earlier comment that there are some areas in which they compete - where they will need to reach an agreement - but that there are more areas where they are "stronger together". Trump says this is true.

    "We're going to get the right deal," Carney says.

  14. Trump pushed on possible plans to deploy National Guard to Portlandpublished at 17:29 BST 7 October

    Trump and Carney in the Oval OfficeImage source, Pool

    Trump is asked about his plans to deploy the National Guard to Portland, Oregon and whether he would invoke the Insurrection Act to do so.

    "It's been invoked before, as you know," Trump responds. He references Chicago, saying that "it is a great city with a lot of crime," adding that "if the governor can't do the job, we'll do the job".

    • For context:The Insurrection Act allows the US president to deploy military troops inside the country. It was last used in 1992 by George H W Bush to suppress riots in Los Angeles after the acquittal of policemen who beat Rodney King
  15. Trump touts administration's 'very hard stand' on drugs traffickingpublished at 17:27 BST 7 October

    Trump is now onto a discussion about borders, and Carney points out that Canada is "tightening the border" too.

    The US president goes on to explain how his administration is taking "a very hard stand" on drugs arriving to the US by water, and says this is also benefitting Canada.

    "The fact is we probably saved at least 100,000 lives, American lives, Canadian lives, by taking out all those boats," he says.

    "Now they don't come in that way," Trump adds.

  16. Canada and US 'in competition', says Trumppublished at 17:24 BST 7 October

    Trump continues - saying he wants Canada "to do great, but there's a point at which we want the same business".

    He adds that the two countries are "in competition" and that is why he keeps mentioning one "very easy way to solve that problem".

  17. Trump calls trade negotiations with Canada 'complicated'published at 17:22 BST 7 October

    Trump and Carney speak in Oval OfficeImage source, Pool

    Trump calls trade negotiations with Canada "complicated, more complicated than maybe any other agreement we have on trade."

    He says this is due to "natural conflict" between the two countries, but also "mutual love."

    "I love Canada, and the people of Canada, and Mark feels the same way about here," Trump says. But he adds that they have competing business interests that are amplified by the two countries' close geographic proximity to one another, and that this has hurt the United States.

    Trump says he believes the Canada-US relationship has "come a long way," and the "natural conflict" is something the two are working on.

    Asked about whether he would offer Canada a compromise on US metal tariffs, Trump responds that compromises have already been made. "We want to make our own steel, we don't want to bring in steel for the most part," but he adds that at the same time, the US wants Canada to do well.

    "We're working on formulas, and we'll get there."

  18. Trump pushed on government shutdownpublished at 17:20 BST 7 October

    Trump is asked about workers being furloughed during the US government shutdown.

    He says that "for the most part we're going to take care of our people" but there are "some people who really don't deserve to be taken care of - and we'll take care of them in a different way".

  19. Trump interrupts Carney with comments on merging US and Canadapublished at 17:18 BST 7 October

    Carney now addresses reporters. He thanks Trump for hosting him for a second time this year, calling him "a transformative president".

    He also lists some of the president's accomplishments, like securing "unprecedented commitments from Nato partners to defence spending" and "disabling Iran as a force of terror."

    Trump then interjects by talking of a "merger of Canada and the United States," which draws a few laughs from the room.

    "That wasn't where I was going," Carney says, appearing to brush the comment aside.

    Carney adds that he stands behind Trump's Israel-Gaza peace plan. "We'll do whatever we can to support that."

  20. No word from Trump on lifting Canada tariffspublished at 17:16 BST 7 October

    Trump and Carney in the Oval OfficeImage source, Pool

    Trump then says that the pair will be discussing tariffs in their talks today, but does not comment on whether he will remove those currently in place on Canada.