Carney reports 50% tariff talks resume ahead of US midterms

Canadian Prime Minister Mark Carney confirmed on Sunday that he held a constructive conversation with U.S. President Donald Trump regarding a potential trade deal. The two leaders agreed that their teams will work in the coming weeks to reach an agreement. This development occurs just days before U.S. voters head to the polls for midterm elections.

The trade dispute escalated in August when Canada withdrew from negotiations. Carney stated that U.S. demands threatened Canadian sovereignty, French-language protections, and the auto industry. In response to the impasse, the United States imposed 50% tariffs on approximately $20 billion worth of Canadian goods. Canada retaliated against the new duties.

Negotiations have resumed since the August break, though progress has been uneven. Carney noted last week that talks had intensified slightly. He attributed the movement toward a deal to Washington moving closer to Canada's position. As recently as Wednesday, however, Carney said the countries were not yet ready to finalize an agreement before Tuesday's elections.

Carney described the recent discussions as building on outlines for a deal that would create jobs and lower costs for families. He emphasized the need to protect Canada's languages, culture, and sovereignty. "Our teams will now be working in the coming weeks to deliver that outcome," Carney wrote on social media.

The two nations are discussing possible relief from U.S. tariffs on Canadian steel and automobiles. No specific details of a potential agreement have been announced. The trade war has become a central issue in the Nov. 3 midterm elections. Republican candidates in Michigan and Maine have faced pressure over tariffs hurting local businesses. Michigan Senate candidate Mike Rogers has called for an end to the tariff war.

The trade conflict and Trump's threats to make Canada the 51st U.S. state have pushed Carney to diversify markets. Canada and the European Union launched a new economic and security alliance on Friday. This move supports Carney's goal of doubling Canadian exports outside the United States over the next decade.