Carney Asserts U.S. Shifts Toward Canadian Trade Demands

Canadian Prime Minister Mark Carney stated Monday that recent trade discussions with the United States have intensified, attributing any progress to Washington moving closer to Canada's demands.

Carney described the shift as a slight but measurable change in the negotiation dynamics. He noted that Canada's core position remains unchanged despite the increased activity in the talks.

The remarks were made eight days before the U.S. midterm elections. White House economic adviser Kevin Hassett recently suggested the two nations are close to reaching an agreement.

Carney addressed concerns about the durability of potential deals. When asked if President Donald Trump would sign a new agreement in permanent ink, Carney replied that he was not certain. This followed earlier warnings that Washington's commitments had previously been tentative.

The current standoff began in August when Canada rejected U.S. terms that it said crossed red lines. Trump subsequently imposed 50% tariffs on approximately $20 billion in Canadian goods, triggering retaliatory measures from Ottawa.

Trump announced Friday that he would lift some of these 50% tariffs while adding new duties to other products. Two days later, he claimed at a Michigan rally that Canada was ready to concede and that a deal would be settled soon. He also told a Detroit television station an agreement could be reached before the midterms, though he acknowledged the process might take months.

The trade dispute has influenced political messaging in key Senate races. Republican candidate Mike Rogers in Michigan argued in a campaign ad that the tariff war needs to end. In Maine, Republican Senator Susan Collins urged the administration to ease tariffs on Canadian goods used by local businesses, leading to announced exemptions.

The U.S. trade deficit with Canada is driven primarily by energy imports. The United States purchases millions of barrels of Canadian oil daily, often at a discount, resulting in a trade surplus when energy is excluded from the calculations. Trump also seeks to shift automotive production from Canada to the United States, a move that affects an industry integrated across the border for decades.

Carney hosts European Union leaders in Montreal this week to explore 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 not yet been formally defined.