Trump says Canada trade deal moving forward, announces talks on Mexico pact

US President Donald Trump on Friday (local time) said a trade deal with Canada was moving forward and expressed confidence that an agreement would be finalised, while also announcing that Washington had started work on a new deal with Mexico.

Speaking to reporters at Joint Base Andrews before departing for Myrtle Beach, South Carolina, Trump was asked about the status of the Canada deal. He said, "Pretty much, I think so, we'll see. I've dealt with the Prime Minister, have a good relationship and yeah, we have to take care of our farmers. Our farmers are very important to me and the deal with Canada is moving along and we should be able to have a deal with Canada."

Announcing a new deal with Mexico, he said, "We're also starting on a new deal with Mexico. A much better deal for the United States. I only make good deals, much better deal for the United States, both with Canada and Mexico," he added.

Trump said the proposed agreement with Canada would focus on protecting American farmers, who he said had been affected by previous trade arrangements.

The remarks came after Trump earlier said the US and Canada were close to finalising a trade agreement and that Washington was considering reducing some tariffs on Canadian steel and aluminium as part of the deal.

"We may bring some of the tariffs down to a level where other countries are, because Canada was paying a higher tariff. Canada was paying us a higher tariff," Trump had said, according to previous remarks.

Trump also said American farmers would no longer face tariffs under the proposed agreement.

"We're getting zero for our farmers. You know, farmers have been hurt very badly by Canada, and they won't be paying any tariffs anymore," he said.

The US President had delayed the implementation of a proposed 50 per cent tariff on Canadian goods by three days at Canada's request to allow both sides to finalise details.

"We did a three-day pause. It was supposed to be a 50 per cent straight across-the-board tariff, that was going into effect at 7 o'clock this morning, and I delayed it at the request of Canada for three days so we can iron out the details," Trump had said.

Canadian Prime Minister Mark Carney had also confirmed that Washington agreed to postpone the implementation of tariffs on a range of Canadian goods until the end of August 21, saying that "substantial progress has been made, although there is important work still to be done."

The proposed tariffs were initially expected to cover hundreds of Canadian products, including goods worth billions of dollars.

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