Trump says aides have ‘concept’ of Canada trade deal

President Trump said Sunday his administration and Canadian officials are close to reaching a deal to end their months-long trade dispute .

“We have the concept of a very good deal with Canada,” Trump told reporters in Iowa, adding the two sides are “very close” to reaching an agreement.

The president noted he spoke to Canadian Prime Minister Mark Carney on Saturday, saying the deal they discussed would be “great for our farmers, great for our country” and “fine” for Canada.

“Part of the agreement is that our farmers will have to pay no tariffs,” Trump said.

The U.S. and Canada have traded tariffs on each other’s goods since late August, when Trump’s 50 percent levies on $27.6 billion worth of Canadian pr’oducts took effect .

Carney matched those tariffs in September, and Trump later banned American businesses from importing nearly $1 billion worth of Canadian dairy products, motor vehicles and many alcoholic beverages.

The president has also threatened to increase import taxes to 50 percent on Canadian cars, trucks, auto parts and steel starting on Jan. 1.

Carney said Sunday he had a “good conversation” with Trump on the “future” of trade between the two countries.

“This builds on our recent constructive discussions on the outlines of a mutually beneficial trade deal that would create jobs for our workers, boost affordability for families, and fully respect Canada’s languages, culture, and sovereignty,” the Canadian leader wrote on social platform X .

Carney added he and Trump’s teams “will now be working in the coming weeks to deliver that outcome.”

Trump also said Sunday the construction of the Keystone Pipeline expansion will be part of a trade agreement, noting Canada will pay for the project.

“We’re going to give them the route, and it’s largely been determined,” the president added.

The Biden administration revoked a federal permit for the Keystone XL project, which would expand the established pipeline between Western Canada and Texas. TC Energy canceled the expansion project in 2021.

Interior Secretary Doug Burgum said the project would benefit American farmers and ranchers in the form of lower diesel prices. Diesel costs nearly $6.30 per gallon as of Monday, per AAA .