Carney Claims U.S. Shifts Trade Stance Before Midterm Elections

Canadian Prime Minister Mark Carney stated on Monday that the United States is adjusting its trade position to match Canada's demands. He made the remarks eight days before the U.S. midterm elections. White House economic adviser Kevin Hassett indicated the two nations are nearing a finalized agreement.

Carney described the recent negotiations as seeing a slight intensification. He maintained that Canada's core negotiating stance has not changed. Trade Minister Dominic LeBlanc's office characterized the current exchanges as a constructive dialogue with Washington.

The U.S. and Canada reached a tentative deal in August that Ottawa subsequently rejected. Carney said the American offer crossed Canadian red lines. In response, President Donald Trump imposed 50% tariffs on approximately $20 billion in Canadian goods. Canada retaliated with its own trade restrictions.

Trump announced on Friday that he would reduce some of the 50% tariffs on Canadian products. He simultaneously added new duties to dozens of other items. At a campaign rally in Michigan two days later, Trump claimed Canada was willing to concede to U.S. demands. He told a Detroit television station that an agreement could be reached before the midterms, though the process might take months.

The tariff dispute has entered the political arena in key Senate races. Republican candidate Mike Rogers in Michigan ran an ad stating Canada is not an enemy and urging an end to the tariff war. Republican Senator Susan Collins in Maine pressed the administration to lower tariffs on goods used by farmers and businesses. Washington granted exemptions for these items on Friday.

Trump has cited the U.S. trade deficit with Canada as a primary concern. Energy accounts for more than the entire gap in that balance. The United States buys millions of barrels of Canadian oil daily, usually at a discount. When energy is excluded from the calculation, the U.S. runs a trade surplus with Canada. Trump also seeks to move auto production from Canada to the United States, a move that threatens a deeply integrated cross-border industry.

Carney is hosting European Union leaders in Montreal on Thursday and Friday. The visit aims to strengthen economic and security ties. European Commission President Ursula von der Leyen has proposed designating Canada as the EU's first associate member. The specific terms of that status have not yet been defined. Carney aims to double Canadian exports to markets outside the United States over the next decade.