World

Canadian PM Announces Progress in Trade Talks with U.S. Ahead of Midterms

By AFP , AP and Reuters

Canadian Prime Minister Mark Carney announced that talks with the United States have made progress toward a future trade deal, a development that could ease tensions between the two North American neighbours. The announcement was made on Sunday, two days before the U.S. midterm elections on November 3, which will decide control of the U.S. Congress. Carney posted on X: “Good conversation with US President Donald Trump on the future of Canada-U.S. trade.” He added that teams from both countries will work in the coming weeks to deliver an outcome, building on recent constructive discussions about a mutually beneficial trade deal. The relationship between Ottawa and Washington has been strained by a trade war, with Canada and the U.S. imposing billions of dollars in tariffs on each other’s goods in recent months. In August, high‑level trade talks broke down and Trump imposed a 50 percent levy on $20 billion of Canadian goods, about 5.5 percent of Canada’s exports. Canada responded with equivalent tariffs on U.S. steel, dairy, appliances, farm equipment, pulp and paper, and electronics. Trump said last week that he expected a new trade agreement with Canada to be reached “pretty soon,” but offered no details. The trade tensions have become an issue in the midterm elections, especially in Michigan and Maine, where Republican candidates face pressure over tariffs that have hurt local businesses. Canada has also sought to diversify its trade options and recently welcomed a European Union offer to become an “associate member.” Carney praised the proposal’s ambition, describing his goal as a “unique alliance” rather than conventional EU membership.