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 call, initiated by Carney, marked the first direct exchange between the two leaders since 30 June. A Canadian government source said the leaders touched on economic and security relations, as well as the situations in Ukraine and Gaza.

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

Trump administration officials also confirmed that trade was a central topic.

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.

While the two sides have been negotiating for months, officials acknowledged that a breakthrough on a new deal is still far off.

Both leaders agreed to speak again soon, though no details were provided on whether a face-to-face meeting is being planned.

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