Canada's Carney spoke to Trump and discussed trade, Ottawa says

OTTAWA (Reuters) -Canadian Prime Minister Mark Carney spoke with U.S. President Donald Trump on Thursday and had "a productive and wide-ranging conversation" on trade challenges and other issues, Carney’s office said in a statement.

The phone call, which comes at a time when Canada and the United States are locked in a trade war, was the first known conversation between the two leaders since June 30.

Carney initiated the call, said a Canadian government source who requested anonymity because they were not authorized to speak to the media.

The leaders - who also discussed the conflicts in Ukraine and Gaza - agreed to reconvene shortly, the statement added, but did not give any details.

Carney’s office said it could not comment when asked whether the two men intended to speak again, or actually meet.

In Washington, a Trump administration official said the two men had discussed trade.

Canada has been holding talks with the United States on a new economic and security relationship for months but the two sides are not close to a deal.

"The leaders discussed current trade challenges, opportunities, and shared priorities in a new economic and security relationship," the statement said.

In late July, Trump signed an executive order increasing tariffs on Canadian goods to 35% from 25% on all products not covered by the U.S.-Mexico-Canada trade agreement. The White House cited what it said was Canada’s failure to stop fentanyl smuggling and address U.S. concerns about trade barriers.