Carney claims U.S. shifting toward Canada's trade demands
The prime minister said talks have intensified slightly ahead of the U.S. midterm elections, but Ottawa remains firm on its core requirements.
By Giulia Marshall ·
Canadian Prime Minister Mark Carney said Monday that trade negotiations with the United States have picked up slightly, but only because Washington is moving closer to Ottawa's position.
Carney described the recent talks as a "slight, slight intensification" but insisted that Canada's negotiating stance has not changed. His comments come eight days before the U.S. midterm elections, a period in which White House economic adviser Kevin Hassett suggested the two nations are close to finalizing an agreement.
The current standoff began in August when Canada rejected terms from Washington that Carney said crossed national "red lines." In response, President Donald Trump imposed 50 percent tariffs on roughly $20 billion in Canadian goods. That action triggered retaliatory measures and further trade restrictions from Ottawa.
Since then, Trump has signaled a shift in strategy. On Friday, he announced he would lift some 50 percent tariffs on Canadian goods while imposing new levies on dozens of other products. Two days later, at a campaign rally in Michigan, Trump claimed Canada was "willing to give us anything at this moment" and predicted a deal would be settled "pretty soon." He told a Detroit television station that an agreement might be reached before the midterms, though he acknowledged it could take months.
Trade Minister Dominic LeBlanc's office described the current state of relations as a "constructive dialogue." Carney addressed questions about whether Trump would stick to a new deal, referencing his own earlier warning that the president's commitments are sometimes "written in pencil." When asked if Trump would "sign in pen" this time, Carney replied, "I don't know that."
The tariff dispute has become a factor in closely watched Senate races. Republican candidate Mike Rogers stated in a Michigan campaign ad that Canada is "not our enemy" and that the country needs to end the tariff war now. In Maine, Republican Senator Susan Collins pushed the administration to ease tariffs on goods used by farmers and businesses, a move that aligns with the exemptions announced by Washington on Friday.
Trump has repeatedly criticized the U.S. trade deficit with Canada, noting that energy accounts for more than the gap. The United States imports millions of barrels of Canadian oil daily, usually at a discount, and maintains a trade surplus with Canada when energy is excluded from the calculation. Trump also wants automakers to move production from Canada to the U.S., a demand that threatens an industry deeply integrated across the border for decades.
Carney is using the trade uncertainty to push for new markets. He aims to double Canadian exports outside the United States over the next decade. He will host European Union leaders in Montreal on Thursday and Friday to discuss closer economic and security ties. European Commission President Ursula von der Leyen has proposed making Canada the EU's first associate member, a status that has yet to be formally defined.
