Canadian Prime Minister Mark Carney and former U.S. President Donald Trump held another conversation late Tuesday as a key tariff deadline loomed, according to sources familiar with the matter. The discussion marks the second direct contact between the two leaders in less than a week, underscoring the urgency of reaching a deal before the U.S. imposes fresh duties on Canadian goods.
The exact contents of the call were not disclosed, but both sides have been under pressure to resolve differences over trade imbalances, digital services taxes, and cross-border investments. A senior Canadian official said the conversation was "constructive," though no agreement has been announced.
The looming deadline has drawn attention beyond North America. Economists in the Philippines and across Asia have been watching closely, as any escalation could disrupt global supply chains and dampen investor confidence. Local exporters, particularly those in electronics and agriculture, could face indirect effects if US-Canada trade tensions trigger broader market volatility.
Markets remained cautious on Wednesday, with analysts noting that a failure to extend the deadline could lead to immediate retaliation. Both governments have signaled willingness to keep talking, but time is running short.
Observers say the outcome of these talks may set a precedent for how the U.S. handles other trade disputes, including those involving emerging economies. For Manila, the development serves as a reminder of the risks posed by protectionist policies in major economies.