Inside the collapse of the Canada-US trade deal

By Mickey Djuric | 05/05/2026 12:07 PM EDT

Trump blamed the Reagan ad. Negotiations really fell apart over autos.

Donald Trump shakes hands with Mark Carney in the Oval Office.

President Donald Trump greets Canadian Prime Minister Mark Carney in the Oval Office of the White House in Washington, on Oct. 7, 2025. Evan Vucci/AP

OTTAWA — Prime Minister Mark Carney left the White House in early October with Canada and the United States in reach of a trade deal.

Inside the meeting, senior U.S. officials were enthusiastic about a possible agreement covering steel, aluminum, uranium and energy.

Canadian and American negotiators were told to put the framework on paper, with the goal of finalizing an interim deal before American Thanksgiving.

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“It was an awesome meeting,” Pete Hoekstra, U.S. ambassador to Canada, recently told POLITICO.

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