Carney Claims U.S. Yielding to Canadian Trade Terms

Ottawa, Canada, Prime Minister Mark Carney stated on Monday that trade discussions with the administration of U.S. President Donald Trump have intensified slightly. Carney attributed this movement to Washington aligning more closely with Canadian demands. He made these remarks eight days before U.S. midterm elections.

Carney described the recent activity as a slight intensification of dialogue. He confirmed that Canada's negotiating position has remained unchanged. Trade Minister Dominic LeBlanc's office characterized the current state of affairs as constructive dialogue with Washington.

Carney addressed the reliability of potential agreements during his comments. He previously warned that U.S. commitments were sometimes written in pencil. When asked if President Trump would sign a new deal in pen, Carney replied that he did not know for certain.

Tensions escalated in August when Canada rejected terms from Washington. Carney said the previous offer crossed Canadian red lines. Trump responded by imposing 50% tariffs on roughly $20 billion in Canadian goods. This action prompted Canadian retaliation and additional trade restrictions.

Trump indicated on Friday that he would lift some 50% tariffs on Canadian products. He simultaneously announced new tariffs on dozens of other items. Two days later, he told a campaign rally in Michigan that Canada was willing to give the U.S. anything. He suggested a deal could be settled before the midterms, though he acknowledged it might take months.

The tariff dispute has become a factor in several U.S. Senate races. Republican candidate Mike Rogers in Michigan argued in a campaign ad that Canada is not an enemy. He called for an end to the tariff war. In Maine, Republican Senator Susan Collins pressed the administration to ease tariffs on goods used by farmers. Washington announced 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 total gap in that deficit. The United States purchases millions of barrels of Canadian oil daily, usually at a discount. Excluding energy, the U.S. runs a trade surplus with Canada. Trump also seeks to move automotive production from Canada to the U.S. This effort targets an industry deeply integrated across the border. The trade war has pushed Carney to seek new markets, with a goal to double Canadian exports outside the United States over the next decade. Carney will host European Union leaders in Montreal Thursday and Friday to pursue closer ties. European Commission President Ursula von der Leyen has proposed making Canada the EU's first associate member.