07:45 AM EDT, 05/06/2025 (MT Newswires) -- Canadian Prime Minister Mark Carney has headed to the United States for his first in-person meeting with President Donald Trump on Tuesday, noted Bank of Montreal (BMO).

The visit comes at a crucial time, with trade and tariffs at the top of the agenda, said the bank. President Trump has sounded optimistic sighting that the duo will have "a great relationship."

On deck Tuesday at 8:30 a.m. ET, the bank looks for Canada's merchandise trade deficit to widen further. BMO pointed out that with Canadian trade subject to tariffs and countertariffs to/from its largest trading partner, it's expecting the deficit to deepen to $2.0 billion in March.

A negative manufacturing flash points to a pullback in both imports and exports, while lower oil prices will weigh on the value of energy shipments. The typically volatile trade data is subject to even bigger swings as long as the trade war with the U.S. lasts, especially with new tariff threats and exemptions continuing to dominate the headlines, added the bank.

Meanwhile, Toronto housing market figures were released earlier Tuesday. Greater Toronto area home sales rose in April from a month earlier, but are still down more than 23% year over year, while benchmark home prices fell more than 4% year over year.

Despite a string of Bank of Canada rate cuts, the Toronto housing market remains under pressure as households face major uncertainty, stated BMO.