Canadian Prime Minister Mark Carney says some of U.S. President Donald Trump’s threats should be viewed as prepositioning ahead negotiations to renew the free trade pact between the two large trading partners.

The visit would mark the highest-level engagement between the two countries since relations cooled under former prime minister Justin Trudeau.

Canadian PM Mark Carney pushes back against Trump's 100% tariff threat, firmly denying plans for China free trade deal after recent diplomatic visit.

David Coletto, the boss of Abacus Data, a polling firm, reckons Mr Carney probably amassed domestic political capital with his Davos speech, a rallying cry to stand up to Mr Trump, which plays well with most Canadians.

President Donald Trump on Saturday threatened to impose a 100% tariff on goods imported from Canada if America's northern neighbor went ahead with its China trade deal, intensifying a feud with Prime Minister Mark Carney,

Chinese importers secured up to 10 Canadian canola cargoes following Prime Minister Mark Carney's visit to Beijing earlier this month, two trade sources told Reuters, easing supply tightness and potentially displacing Australian exports.

Prime Minister Mark Carney announces GST credit top-up, other affordability measures