Carney Announces Progress on Canada-US Trade Deal

Canadian Prime Minister Mark Carney stated on Sunday that his government has made progress toward a new trade agreement with the United States. The announcement aims to reduce friction between the two North American economies. This development occurs just two days before the November 3 US midterm elections.

The current trade dispute has involved billions of dollars in reciprocal tariffs. In August, high-level negotiations collapsed, leading President Donald Trump to impose a 50 percent levy on $20 billion in Canadian goods. That amount represents 5.5 percent of Canada's total exports. Ottawa retaliated with tariffs on US steel, dairy, appliances, farm equipment, pulp, paper, and electronics.

Carney described a recent call with Trump as a good conversation regarding the future of trade. He confirmed that teams from both countries will work in the coming weeks to finalize an outcome. Carney noted that this effort builds on recent constructive discussions about the outlines of a mutually beneficial deal.

Trump had said last week that he expected a new agreement to be reached soon, though he provided no specific details. In his second term, the US president has imposed tariffs on several allies, disrupting global supply chains. Canada remains one of the largest trading partners for the United States.

The trade tensions have become a focal point in the US midterm campaign. Republican candidates in Michigan and Maine face pressure from local businesses affected by the tariffs. Meanwhile, Canada is working to diversify its trade relationships. The country recently welcomed an offer from the European Union to become an associate member, a step Carney described as a unique alliance rather than conventional membership.