US and Canada to strike trade deal as early as next week? | Forexlive

The Toronto Sun is reporting that a deal between both sides could be imminent after a speech at the Empire Club in Toronto from Trump’s new emissary to Canada, Pete Hoekstra. There were mixed opinions about Hoekstra’s speech though but the crowd was said to be stirring up speculation about a deal happening before the G7 summit.

Hoekstra noted that “I am optimistic about where this relationship is and I’m more optimistic about where I believe this relationship is going”. That got the audience going even if he was light on any details about the situation.

One source commented that “it will happen before the G7, perhaps as early as next week”, with another attendee noting that “Ottawa knows what they need to do” following Hoekstra’s talk.

And despite the idea of Trump possibly doubling tariffs, the report cites a top source in Ottawa as saying that “there is a hopeful scenario in which there could be a deal, but the next 48 to 72 hours will be crucial”. Another source added “the target from the Carney team is to have a deal before the G7”.

Well, there’s certainly a lot of hope about what this can become. And if anything, it will also feed into the broader idea that Trump would rather de-escalate from here rather than escalate the trade war – not just with Canada, but everyone else too.

As for any deal here, I would imagine it being an outline or framework about a new deal in general rather than an outright renegotiation of the USMCA. But we’ll see.