Carney: Washington Moving Closer to Canada's Trade Stance

Canadian Prime Minister Mark Carney stated on Monday that trade negotiations with the United States have intensified slightly. He attributed any forward movement to Washington shifting closer to Ottawa’s demands. Carney emphasized that Canada’s core negotiating position has not changed.

The comments were made eight days before U.S. midterm elections. White House economic adviser Kevin Hassett recently suggested the two nations are close to finalizing a deal. Carney said, “To the extent any progress has been made, it’s because the U.S. is coming closer to our position.”

Canada’s Trade Minister Dominic LeBlanc’s office described the ongoing talks as a “constructive dialogue.” Carney characterized the current state of negotiations as a “slight, slight intensification.” He noted uncertainty regarding whether President Donald Trump would fully honor a new agreement. When asked if the president would “sign in pen,” referencing a previous warning about “pencil” signatures, Carney replied, “I don’t know that.”

Relations soured in August when Canada rejected U.S. terms that crossed its “red lines.” In response, Trump imposed 50% tariffs on approximately $20 billion in Canadian goods. This action triggered retaliatory measures from both sides. On Friday, Trump announced he would lift some of these 50% tariffs while imposing new duties on other products. Two days later, he told a rally in Michigan that Canada was “willing to give us anything at this moment.”

Tariffs have become a focal point in several Senate races. Republican candidate Mike Rogers in Michigan argued in an ad that “we need to end this tariff war now.” In Maine, Republican Sen. Susan Collins pushed for exemptions on goods used by farmers, which Washington granted on Friday. The U.S. currently runs a trade surplus with Canada when energy is excluded, as it buys millions of barrels of Canadian oil daily at a discount.

Trump has also pressured automakers to move production from Canada to the United States. The trade tensions have driven Carney to seek new markets, with a goal of doubling Canadian exports outside the U.S. over the next decade. Carney will host European Union leaders in Montreal this 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 remains undefined.

Carney’s strategy aims to reduce reliance on the U.S. market. The upcoming meeting in Montreal seeks to formalize new partnerships. Von der Leyen’s proposal represents a concrete step toward deeper integration. The precise terms of the associate membership have not been detailed. Carney expects to discuss these points with EU leaders this week.