U.S. and Canada accelerate trade talks amid looming U.S. midterm elections

Negotiations at the political level between the United States and Canada have picked up speed after a two-month stalemate, according to multiple sources familiar with the talks. The discussions are being led for Canada by Trade Minister Dominic Leblanc, while formal talks between trade representatives have yet to begin, as noted by Canada’s lead negotiator Janice Charette.

Both sides see the window before the U.S. midterm elections on Nov. 3 as an opportunity to reach an agreement, particularly on tariffs affecting Canadian steel and autos. Prime Minister Mark Carney said Canada is prepared to sign a deal that serves Canadian interests, emphasizing “clear bottom lines, red lines” that were not acceptable in August. He added that any U.S. movement toward those points would improve the prospect of a deal, but he declined to predict whether President Donald Trump would ultimately sign an agreement.

U.S. Senator Susan Collins, who is seeking re-election in Maine, announced that President Trump has agreed to lift tariffs on certain Canadian corrugated paper, plastic containers and agricultural machinery. However, new tariffs have been imposed on a range of Canadian products, including cocoa powder, paints, shampoos and vinyl flooring, and a 50 % tariff will apply to sewage sludge and some municipal waste.

Trump told supporters in Port Huron, Michigan, that he expects the trade dispute with Canada to end “pretty soon,” while also criticizing Canada for “ripping off” the United States. Sources said there is no guarantee that Canada will accept the president’s statements at face value.

The outcome of the negotiations remains uncertain, with analysts noting that any agreement would require multiple U.S. concessions on issues that caused the August breakdown, such as Canada’s ability to pursue other trade deals and the scope of tariffs on autos, steel and aluminum.