President Donald Trump said Sunday the U.S. is "very close" to a trade deal with Canada, one in which Ottawa would pay for the Keystone pipeline, days before the midterm elections.

US Has Been 'Losing Money' With Canada

Trump told reporters, ahead of a rally in Dubuque, Iowa, that he spoke with Canadian Prime Minister Mark Carney and the two sides have "the concept of a deal" that would be "great for our farmers, great for our country and it'll be fine for Canada, too."

"We have been losing money for many years with Canada," Trump said.

He added that "we are now very close to having a deal" after two conversations with his Canadian counterpart last week.

In a post on X, Carney described a "good conversation" with Trump on the future of trade, adding that their teams will now work "in the coming weeks" toward a deal that creates jobs, boosts affordability and respects Canada's culture and sovereignty.

Canada to Build Keystone Pipeline

Asked whether the Keystone pipeline is part of the deal, Trump said Canada would "build the Keystone pipeline" and "pay for all of it," with the U.S. providing the route, which has "largely been determined."

The President added that U.S. farmers will pay no tariffs under the deal, noting they had faced duties of as much as 400% on milk products.

Tariff Fight Continues After Trump Exempts Some Canadian Goods

After trade talks broke down in August, the Trump administration imposed 50% duties on $27.6 billion of Canadian goods, and Canada responded with tariffs of 15% to 50% on more than $20 billion of U.S. goods that took effect Sept. 8.

Last month, Trump exempted select Canadian imports from the 50% tariffs, including plywood, paper products and machinery, while adding goods such as carpets, shampoos and air conditioners to the list.

Carney told Politico on Friday that Canada can afford to wait for a new U.S. president rather than accept a deal that does not serve its interests.

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