Canada and the United States will spend the coming weeks working towards a new trade agreement after Prime Minister Mark Carney and President Donald Trump struck an unexpectedly upbeat tone in separate remarks on Sunday, raising hopes of an end to a tariff dispute that has soured relations between the two neighbours.
Carney said on 1 November he had held a constructive conversation with Trump about the outlines of a deal that would create jobs, lower costs for families and protect Canada’s languages, culture and sovereignty. “Our teams will now be working in the coming weeks to deliver that outcome,” he wrote on social media.
Hours later, after landing in Iowa for a campaign rally, Trump told reporters the two sides had “the concept of a very good deal with Canada” and were “very close to having a deal”. He said he had spoken to Carney on 31 October and that any agreement would be “great for our farmers, great for our country, and it’ll be fine for Canada”.
Trump also said the talks involved construction of the Keystone XL pipeline and the prospect of US farmers paying no tariffs on Canadian products, although he made clear final details had not been settled. No draft text or detailed terms have been published by either government.
The warmer tone marks a sharp change from August, when Canada walked away from negotiations after rejecting US demands Carney said threatened Canadian sovereignty, French-language protections and the car industry. Trump responded with 50% tariffs on roughly $20 billion of Canadian goods, and Canada retaliated in kind. The two sides have since discussed possible relief from US tariffs on Canadian steel and cars, but no agreement has been announced.
The timing matters: the remarks came two days before US midterm elections on 3 November, in which control of Congress is at stake. The tariff war has become a campaign issue in border states, notably Michigan and Maine, where Senate races are under way; Michigan Republican Senate candidate Mike Rogers has called for an end to the tariff war.
Not everyone is convinced the thaw will last. University of Toronto historian Robert Bothwell cautioned against reading too much into the improved tone, likening it to a passing weather system bringing “five minutes of variable sunshine. Rain later.” At home, Conservative leader Pierre Poilievre urged Carney to turn talk into a deal, saying Canadians could not afford to wait.
Carney has meanwhile been reducing Canada’s dependence on its southern neighbour: Canada and the European Union launched a new alliance on 30 October, and he has set a goal of doubling exports to countries other than the United States over the next decade.
Sources: Associated Press, via Transport Topics, https://www.ttnews.com/articles/canada-carney-progress-trade
