Carney asserts U.S. concedes to Canadian trade positions

Canadian Prime Minister Mark Carney stated on Monday that the United States is moving closer to Canada’s trade demands. He told reporters in Toronto that recent negotiations have intensified slightly, but Canada’s core requirements remain unchanged.

Carney attributed the recent diplomatic movement to Washington’s shifting stance. “To the extent any progress has been made, it’s because the U.S. is coming closer to our position,” he said. His office described the current state of affairs as a constructive dialogue, though the prime minister characterized the change in momentum as a “slight, slight intensification.”

The remarks come eight days before the U.S. midterm elections. White House economic adviser Kevin Hassett recently suggested that the two nations are close to finalizing a trade deal. Carney addressed the durability of such an agreement when asked if President Donald Trump would sign it in pen. Carney noted that he had previously warned the U.S. signature was sometimes written in pencil. “I don’t know that,” Carney replied.

Tensions escalated in August after Canada rejected U.S. terms that crossed its red lines. In response, Trump imposed 50% tariffs on approximately $20 billion in Canadian goods. Ottawa retaliated with its own trade restrictions. Last Friday, Trump announced the removal of some of those 50% tariffs while applying new rates to dozens of other products.

At a campaign rally in Michigan two days later, Trump claimed Canada was willing to provide concessions. He told a Detroit television station that an agreement could be reached before the midterms, though he acknowledged it might take months. The tariff dispute has influenced campaigns in key Senate races. In Michigan, Republican candidate Mike Rogers argued in an ad that the tariff war must end. In Maine, Republican Senator Susan Collins pushed the administration to ease tariffs on goods used by local farmers, a move Washington addressed with Friday’s exemptions.

Trump has cited the U.S. trade deficit with Canada as a primary concern, although energy accounts for most of that gap. The United States purchases millions of barrels of Canadian oil daily at a discount, resulting in a trade surplus when energy is excluded. He has also pressured automakers to shift production to the U.S., challenging an industry that has been integrated across the border for decades.

The trade friction has prompted Carney to seek new markets, with a goal of doubling Canadian exports outside the United States over the next decade. He will host European Union leaders in Montreal on Thursday and Friday to strengthen economic and security ties. European Commission President Ursula von der Leyen has proposed making Canada the EU’s first associate member, a status that lacks a formal definition.