But those talks excluded Canada, the third NAFTA country.
Canada and the US are trying to finalize a text that could be submitted to Congress by the end of the month to join the deal the Trump administration signed with Mexico. But as an October 1 deadline to renegotiate NAFTA looms, Canada is prepared to offer similar concessions on the dairy industry to those that it agreed to in free trade deals with the European Union and Pacific Rim nations, the sources said.
Trudeau, who over the past year has faced increasing criticism for backtracking on promises, ordering endless consultations on major topics and failing to fulfill many of his campaign promises, had taken a tougher stance against the United States in recent weeks.
Trump has raised pressure on Ottawa, threatening to impose duties on Canadian auto imports, which Trudeau said would be "devastating" for the Canadian auto sector.
He and other American politicians have long demanded Canada's system of domestic dairy protections either be abolished or heavily modified to give U.S. exports a bigger share. "Having said all of that, nothing is done until everything is done", Freeland told reporters.
"I don't think President Trump will go to the mat over Chapter 19".
If this time frame holds true, Canada and the USA have roughly until the end of November to reach a deal over these contentious negotiations.
Canada has reportedly offered to make concessions to its protected dairy industry, which has come under repeated attack from Trump, in an effort to retain Chapter 19.
"We have all been dealing in good faith", he said.
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"At the end of the day, neighbors help each other when they need help".
As a result of what Freeland described as their "hard work", officials decided it would be best to hold a meeting.
"When it comes to Trump tweets there's a discount premium to them", said Carleton University professor and foreign policy expert Fen Hampson, who advises Trudeau to "hunker down, say nothing, not rise to the bait".
Negotiations have stretched on for 13 months so far and are stalled on a number of issues including dispute resolution, cultural protection, and how much access American farmers should have to the Canadian dairy market.
"We're negotiating all this at once".
Dairy has been singled out as a key hurdle, including on Friday when Larry Kudlow, a senior economic adviser to Trump, said in a Fox Business Network interview that what "continues to block the deal is m-i-l-k".
Still, "with a bit of flexibility, things could move quickly", the source added. The governing Liberal Party is holding its caucus retreat in Saskatoon on Wednesday and Thursday and it's not known whether Ms. Freeland will pause negotiations after Tuesday to head to the caucus meeting.
US Ambassador to Canada Kelly Craft meanwhile delivered an address in Gander, Newfoundland, where dozens of in-bound flights were diverted in the immediate aftermath of the September 11, 2001 attacks.