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Trump’s tariffs have cast a chill over the Canadian automotive sector, but have also affected U.S.-based companies.

Canadian Prime Minister Mark Carney pitched deeper cooperation with the U.S. on energy, including a possible revival of the Keystone XL pipeline, in his meeting with President Donald Trump.

Trump met with Canadian Prime Minister Mark Carney on Oct. 7, and the president described the disagreements as “natural conflicts” because they’re competing for the same business.

One of the world’s most durable and amicable alliances has been fractured by Trump’s trade war and annexation threats.

U.S. tariffs on steel, aluminum, autos and lumber — all major export industries for Canada — remain in place.

Mark Carney’s task is to convince Canadians and opposition lawmakers that his planned spending will eventually boost the resilience and productive capacity of the economy.

Mark Carney also said his government would waive 2026 model year vehicles from Canada’s zero-emission standard and review the overall mandate, confirming a Bloomberg News report.

The Canadian prime minister said more meetings are taking place in Washington involving officials including Michael Sabia, Canada’s top civil servant.

But the government is likely to keep 25% import taxes on U.S. steel and aluminum products, as well as its tariffs on U.S. automobiles.

The two leaders talked about “trade challenges, opportunities, and shared priorities in a new economic and security relationship between Canada and the U.S.,” according to a statement.