Carney says U.S. trade shift reflects movement toward Canadian terms

Canadian Prime Minister Mark Carney stated on Monday that recent trade discussions with the United States have intensified slightly, but he attributed any progress to Washington moving closer to Ottawa's demands rather than Canada changing its position.

The remarks were made eight days before the U.S. midterm elections. White House economic adviser Kevin Hassett has suggested the two nations are close to reaching a deal. Carney maintained that Canada is holding firm on its negotiating stance.

“To the extent any progress has been made, it’s because the U.S. is coming closer to our position,” Carney said. Trade Minister Dominic LeBlanc’s office confirmed that Canada remains in constructive dialogue with Washington, though the Prime Minister described the recent talks as only a slight intensification.

Carney expressed uncertainty about whether President Donald Trump would honor a new agreement. When asked if the President would sign in pen, following earlier warnings that U.S. commitments were sometimes written in pencil, Carney replied, “I don’t know that.”

Tensions escalated in August when Canada rejected Washington's terms, which Carney said crossed Canadian red lines. In response, Trump imposed 50 percent tariffs on roughly $20 billion in Canadian goods. This move triggered retaliation and further trade restrictions from Ottawa.

Last Friday, Trump announced he would lift some of the 50 percent tariffs on Canadian goods while imposing new duties on dozens of other products. Two days later, he told a campaign rally in Michigan that Canada was willing to give the U.S. anything at the moment and that a deal would be settled pretty soon. He added that an agreement could be reached before the midterms, though it might take months.

The tariff dispute has influenced closely watched Senate races. Republican candidate Mike Rogers stated in a Michigan campaign ad that Canada is not an enemy and that the tariff war needs to end. In Maine, Republican Senator Susan Collins urged the administration to ease tariffs on Canadian goods used by farmers and businesses, a move that led to exemptions announced Friday.

Despite repeated complaints from Trump about the U.S. trade deficit with Canada, energy accounts for more than the gap. The United States buys millions of barrels of Canadian oil daily at a discount, resulting in a trade surplus when energy is excluded. Trump also seeks to move automaker production from Canada to the U.S., threatening an industry integrated across the border for decades.

Carney is hosting European Union leaders in Montreal on Thursday and Friday to pursue 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 defined.