Canadian Prime Minister Mark Carney says he has made progress toward a future trade agreement with the United States, a development that could ease strains between the two North American neighbours. He made the announcement on Sunday, two days before the US midterm elections on November 3, which will decide control of Congress.
Carney said on X that he had held a “good conversation” with US President Donald Trump about the future of trade between the two countries.
Tariff war strains ties between Ottawa and Washington
Relations have been damaged by an escalating trade war, with both countries imposing billions of dollars in tariffs on each other’s goods in recent months. Trump has upended global trade by placing tariffs on many US allies, including Canada, one of America’s largest trading partners.
In August, high-level talks collapsed. Trump then imposed a 50 percent levy on $20bn of Canadian goods, equal to 5.5 percent of Canada’s exports, and Canada responded with matching tariffs on US steel, dairy, appliances, farm equipment, pulp and paper, and electronics.
Carney says teams will work on deal in coming weeks
Carney said teams from both countries would work over the coming weeks to deliver an agreement, building on recent discussions about the outlines of a mutually beneficial deal. Trump said last week he expected a new deal to be reached “pretty soon”, but gave no details.
Trade row becomes a midterm election issue
The dispute has become a factor in the midterms, particularly in Michigan and Maine, where Republican candidates have faced pressure over tariffs that have hurt local businesses. Canada has also sought to diversify its trade options and recently welcomed a European Union offer to become an “associate member”. Carney praised the ambition of the proposal and described his goal as a “unique alliance” rather than conventional EU membership.
