06:05 AM EST, 11/03/2025 (MT Newswires) -- Commerzbank said there were renewed signs of optimism over the weekend regarding Canada's relationship with the United States.

After U.S. President Donald Trump reacted angrily to an advertisement from the Canadian province of Ontario, raising tariffs on Canadian imports by 10 percentage points and halting all talks, Canadian Prime Minister Mark Carney has now issued an apology.

At the same time, Carney reiterated Canada's willingness to negotiate a favorable trade agreement, the bank wrote in a note to clients.

However, Commerzbank noted that progress might not come quickly. While Trump emphasized that he has a good relationship with his counterpart, he appears unwilling to resume negotiations for now.

In short, further steps toward detente are likely to be necessary and a deal between the two countries is still a long way off, pointed out the bank. This is also consistent with the fact that the growth figures for August, published on Friday, once again fell short of expectations.

Another Canadian government project, diversifying export targets, is likely to take even longer, added Commerzbank. Last week, the Canadian prime minister also met with his Chinese counterpart in an attempt to improve relations.

Expectations were immediately dampened here, too; several more meetings are likely to be necessary before significant results can be achieved, according to Commerzbank.

For the Canadian dollar (CAD or loonie), this means that risks are likely to outweigh opportunities for the time being, and a sustainable appreciation is likely some time away, noted the bank.