Canadian Prime Minister Mark Carney on Sunday said he had a "good conversation" with US President Donald Trump on the two countries' fraying trade ties, after Washington imposed wide-ranging tariffs on its northern neighbour.

Carney said on social media that the latest talks built on "recent constructive discussions on the outlines of a mutually beneficial trade deal."

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

In his second term, Trump has upended global trade by imposing tariffs on friends and foes alike, with Canada — one of the United States' biggest trading partners — often in his crosshairs.

High-level trade talks between the two countries broke down in August, prompting Trump to impose a host of new levies — some of which he has lifted ahead of crucial US midterm elections.

Affordability is a key issue for voters, and Trump's tariffs have fuelled inflation across the country.

The tariffs enforced after the August talks broke down impacted around US$20 billion worth of goods, ranging from hockey sticks to cement.

In response, Canada imposed levies on an equivalent amount of American products, leading Trump to retaliate with another round of tariffs of as much as 50 percent on certain goods.

Trump last week said he expected a new trade agreement with Canada to be reached "pretty soon," but offered no details.

The US president's chaotic trade policies have seen Canada deepen its engagement with other allies.

On Friday, the European Union and Canada announced an alliance that would see Ottawa become the bloc's first "associate member," although there was some disagreement within the EU over the use of that term. (AFP)



Edited by Tony Sabine