Both leaders attended the Association of Southeast Asian Nations summit in Malaysia but did not meet. When asked if he planned to meet Carney at the upcoming Asia-Pacific Economic Co-operation Forum in South Korea,

Mr. Trump said, “I don’t want to meet with him. I’m not going to be meeting with him for a long time.”

Mr. Carney said he has not spoken to Mr. Trump since trade negotiations were terminated last Thursday. He noted that Canada had made significant progress and concessions during six months of talks, including removing a proposed digital sales tax affecting U.S. tech companies and repealing retaliatory tariffs. “That’s a question for him,” Carney said regarding the sudden breakdown in negotiations, while affirming he remains ready to engage in talks.

Carney also described contingency plans if negotiations do not resume, including expanding trade with Europe and Asia. He signed a letter of intent with Malaysia to increase investment in liquefied natural gas, oil, nuclear, and renewable energy, and said Canada aims to produce 50 million tonnes of LNG annually by the end of the decade. The upcoming federal budget will include “generational investments” to strengthen the Canadian economy.

He noted that the U.S. has incentives to reach a trade deal, as Canada supplies roughly 60 per cent of American aluminium, which would be costly to replace.

The dispute arose from the Ontario TV ad, which used edited footage of former President Reagan criticising protectionism. Mr. Trump stated the ad misrepresented Reagan’s comments and cited it in raising tariffs, although the timing and scope of the 10 per cent increase remain unspecified.

Progress on trade between the two countries has been limited since they missed a deadline to finalize a new agreement on August 1. Following the lapse, President Trump raised general tariffs on Canadian goods from 25 to 35 percent. Despite this, a broad exemption remains in place for items that qualify under the United States-Mexico-Canada Agreement.

“The leaders discussed current trade challenges, opportunities, and shared priorities in a new economic and security relationship between Canada and the U.S.,”

according to a summary of the call released by the Prime Minister’s Office.

“The leaders also discussed how to build on the President’s leadership to support long-term peace and security for Ukraine and Europe. The leaders agreed to reconvene shortly.”

U.S. officials also acknowledged the call and stated that trade was a key topic.

Earlier that day, Foreign Affairs Minister Anita Anand met in Washington with her U.S. counterpart, Secretary of State Marco Rubio, marking their first official meeting since she assumed the role over three months ago.

In a statement, a spokesperson from the State Department said the two officials spoke about President Trump’s peace efforts in the Russia-Ukraine conflict, the security crisis in Haiti, Hamas’s “ongoing obstruction of peace in Gaza,” and unspecified “coercive activity” by China.

Their brief public appearance lasted less than a minute in the Treaty Room at the State Department, where they shook hands, exchanged a few inaudible words, and left without making any statements. A scheduled media availability with Minister Anand was cancelled.

The meeting, planned earlier in the week, came just one day after Secretary Rubio announced sanctions on several officials from the International Criminal Court, including Canadian judge Kimberly Prost, in response to the court’s investigation into alleged misconduct by U.S. personnel in Afghanistan.

Brian Clow, a former senior advisor to ex-prime minister Justin Trudeau, noted that the Carney administration faces a difficult balance between resisting U.S. protectionist measures and dealing with growing economic strain.

“They should not accept a bad deal, they should not feel they have to accept just any deal. But at the same time, the current situation can only go on for so long until we start seeing permanent job losses,” he said.

Trade agreements signed by President Trump with countries such as the U.K., Japan, and members of the European Union have required concessions from partners—both in the form of accepting new U.S. tariffs and granting more access to their own markets—in exchange for the U.S. not raising tariffs even further.

These terms represent a sharp departure from the free-trade approach that has shaped North American commerce for decades, which helps explain Canada’s reluctance to sign a new deal under the current conditions.

According to Clow, President Trump appears to be directly overseeing key decisions on trade, which underscores the importance of personal dialogue between him and Prime Minister Carney.

“I really think it all comes down to Trump and his point of view and his decision on things,” Clow said. “Clearly, he is calling the shots.”