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US President Donald Trump on Thursday hinted at a possible reduction in tensions with Canada, following a recent escalation over a trade dispute sparked by what he called a “fake" advertisement featuring former US President Ronald Reagan.

Canadian Prime Minister Mark Carney was among a select group of world leaders who joined Trump for dinner on Wednesday night during the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea.

“We had a very nice conversation with him last night," Trump told reporters aboard Air Force One when asked about his interaction with Carney.

This dinner followed Trump’s announcement of a 10 per cent tariff increase on Canadian imports, accusing Ottawa of misrepresenting Reagan’s 1987 anti-tariff speech in a television advertisem

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