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Prime Minister Mark Carney is set to hold a one-on-one meeting Monday with U.S. President Donald Trump at the G7 summit, providing an opportunity for the two leaders to make progress on resolving a damaging three-month trade war.

The Prime Minister’s Office on Sunday told reporters about the coming meeting during the Group of Seven leaders’ summit, which is taking place in the Rocky Mountain resort of Kananaskis, Alta.

Mr. Trump, asked if he expected any trade deals to be reached during the summit, told reporters Sunday as he headed to Canada that he expects to clinch some agreements.

“I think we’ll have a few new trade deals, yeah,” he said.

The Monday tête-à-tête between Mr. Carney and Mr. Trump is set to be the first time the pair have met in person since the Prime Minister visited the White House in early May. Mr. Trump’s trip also marks his first visit to Canada since he began pitching Canadians on becoming the “51st state” – a campaign that has fallen on largely deaf ears.

Mr. Carney is also expected to meet Indian Prime Minister Narendra Modi in a one-on-one Tuesday.

As The Globe and Mail reported last week, Canada and the U.S. are exchanging potential terms of agreement in closely held talks on an economic and security deal.

At the G7, the trade war will be everywhere but on the agenda

These exchanges are an effort to spell out what both sides might be able to agree upon, as Ottawa and Washington try to find enough common ground to end their damaging trade war.

The current U.S. levies include tariffs on Canadian steel and aluminum, which doubled to 50 per cent earlier this month. There’s also a 25-per-cent tariff on Canadian-made vehicles, which applies only to the non-U.S. content in those cars and light trucks.

For goods that don’t comply with United States-Mexico-Canada Agreement (USMCA) rules of origin, there is a 25-per-cent tariff – which drops to 10 per cent on critical minerals, energy and potash.

Canada, in response, has imposed retaliatory tariffs on imports from the U.S.

It’s far from clear whether a deal between Canada and the U.S. will be made any time soon, as Washington is negotiating with close to 20 other countries that are seeking relief from tariffs that Mr. Trump has imposed on their products.

The G7 summit is being held just outside Calgary. Here’s who will be there and what these meetings achieve

Mr. Trump announced on Wednesday a deal with China that restores an agreement the two countries brokered in May before they escalated punitive measures in their trade war.

Mr. Carney, in an interview with Radio-Canada last week, said he wouldn’t be pressured into an agreement with Mr. Trump at Kananaskis. He said he wants a deal that benefits both countries.

“If an agreement like that isn’t possible in Alberta, we won’t sign. We can wait,” he said.

The talks on a new economic and security agreement between Canada and the U.S. could amount to a first phase, with the second phase being the renegotiation of the USMCA already scheduled for 2026.

The economic-defence talks are being conducted among a very small circle of officials, including Dominic LeBlanc, the Minister responsible for Canada-U.S. Trade; Canada’s ambassador to the U.S., Kirsten Hillman; U.S. Commerce Secretary Howard Lutnick; and Jamieson Greer, the U.S. Trade Representative.

Topics Canada and the U.S. are talking about include working together to counter China’s unfair trade practices, a discussion that could affect U.S. tariffs on Canadian steel and aluminum, and further border security arrangements to stop the illegal distribution of the opioid fentanyl.

The U.S. also wants Canada to take a greater role in securing the Arctic and join Mr. Trump’s ambitious Golden Dome missile shield – a project that Mr. Carney has publicly said would make sense for Canada.

Canada is facing hard budget choices as it hosts the G7 summit and prepares for a looming NATO meeting. At the latter gathering later this month, Western allies, at Mr. Trump’s request, will be asked to commit to further defence spending hikes in the face of rising threats from Russia and other rivals.

Last Monday, Mr. Carney unveiled $9.3-billion in new funding for Canada’s military and announced the country’s defence spending would hit 2 per cent of gross domestic product this fiscal year.

NATO Secretary-General Mark Rutte has already announced that he expects member countries will agree to further boost core defence spending as a percentage of their GDP to 3.5 per cent.

Hiking Canada’s defence expenditure to that level would require the country to spend an additional $45-billion to $50-billion each year on its military − above and beyond the investments that Mr. Carney announced last week.

With a report from Reuters