Prime Minister Mark Carney and U.S. President Donald Trump are expected to sign a new trade deal within 30 days, signaling a major shift in relations and a potential end to the trade war.

"Prime Minister Carney and President Trump discussed immediate trade pressures and priorities for each country's workers and businesses, and shared updates on key issues raised in negotiations on a new economic and security relationship between Canada and the U.S.," according to a June 16 readout from the Prime Minister’s Office.

The PMO clarified that a new deal would be signed within that timeline.

The major development follows an hour-long meeting between both leaders on Monday morning, where Trump claimed a deal with Canada was "achievable" within days or weeks if both sides agreed.

Amid a U.S.-led tariff war and global uncertainty due to conflicts in the Middle East and Ukraine, the heads of the G7 economies are meeting at the Pomeroy Kananaskis Mountain Lodge to discuss global affairs.

The Trump administration earlier imposed three sets of tariffs affecting Canada: universal levies on steel and aluminum (recently doubled to 50%), tariffs on automobiles and car parts, and Canada-Mexico-specific tariffs related to border security and drug trafficking, some with USMCA carve-outs.

Canada retaliated soon after with tariffs on U.S. goods worth tens of billions of dollars, but quietly backpedaled most.

Following recent interactions with the Trump administration, Canadian officials were optimistic about a swift trade deal with the United States. Canada's ambassador to the U.S., Kirsten Hillman, stated on June 16 that trade talks have accelerated in recent weeks.

"We have had a lot of… productive conversations where we are understanding each other better, or we feel they are understanding us better; that happened again today," Hillman said.

U.S. officials, including Trade Representative Jamieson Greer, agreed to continue discussions later in the week, with both countries aiming to accelerate work on a new deal.

During a meeting photo op with Carney, Trump told reporters that his and the prime minister's views on tariffs were significantly different. 

"I have a tariff concept. Mark [Carney] has a different concept, which is something that some people like," Trump said. "But we're going to see if we can get to the bottom of it today."

Prime Minister Carney informed the President that the G7 requires U.S. and his leadership, to which Trump replied that they have a "very good relationship."

Trump anticipates that a new agreement is achievable within days or weeks, pending bipartisan consensus.

The PMO adds that Carney and Trump discussed collaboration on shared priorities, including critical minerals, gun and drug smuggling, illegal drugs, border security, and potential defence cooperation.

A retracted column from the Economist earlier claimed that President Trump would lift the tariffs on Canada’s exports in exchange for guaranteed access to the country's critical minerals.

The G7 Summit marks their second in-person meeting since the prime minister's visit to the White House on May 6. 

The Liberal government introduced a bill to enhance border security through increased security agency powers and stricter immigration rules. Carney later vowed that Canada would meet NATO's 2% defence spending target this year, earlier than expected.

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