US trade representative Jamieson Greer (right) said the deal eliminates several trade irritants that the Americans had with Canada.
Canada and the US are finalising a highly anticipated trade deal, with President Donald Trump and Prime Minister Mark Carney touting it as a success.
Trump said the proposed deal will be welcomed by US farmers and manufacturers, while Carney said it will secure "the best terms" for Canada's strategic sectors and provide certainty on the future of US-Canada trade.
Trade negotiators met on Wednesday for the third time in as many days after Trump paused a new wave of tariffs he had threatened to impose overnight on a range of Canadian goods.
Details on what the agreement includes have not yet been announced but reports suggest it may cover Canadian steel, aluminium and cars as well as US alcohol.
Speaking to reporters on Wednesday after a 45-minute meeting with his Canadian counterpart, US Trade Representative Jamieson Greer said the Americans are "very happy" and the deal eliminates "some of the irritants" the US had with Canada.
"We feel confident that we've reached an agreement that will not only continue to protect American workers, American jobs, American supply chains, but really strengthen the North American economy," Greer said.
He said he will soon brief Congress and US stakeholders on the deal's details.
The BBC's Samira Hussain explains the impact of Trump's tariffs on the US
Trump said Canada has agreed to eliminate tariffs on US farmers, though he did not specify which specific agricultural sectors would benefit.
Asked whether the US will also reduce some tariffs it has placed on Canada, Trump said by "a little bit".
In a post on X on Wednesday, Carney said "significant progress" had been made and they were moving towards an agreement that addresses "Canada's most important strategic sectors".
Canada has been in pursuit of a deal that would have the US drop or reduce tariffs on its steel, aluminium, automobiles and lumber.
Under a deal that could be completed by Friday, US tariffs on Canadian steel and aluminum would reportedly be cut to 25% from 50%.
The US may also lower its headline tariff rate on Canadian-made vehicles from 25% to 15%, according to reports from US and Canadian media.