Canada Says No Trade Deal Likely Before U.S. Midterm Elections

Prime Minister Mark Carney told reporters that Canada is "not at that position right now" to secure a trade deal with the United States before the November 3 midterm elections. He emphasized that the government seeks a deal that benefits Canadians and aligns with U.S. interests, adding that any suitable agreement would be pursued when it becomes available.

Carney’s remarks follow reports that political-level discussions between the two countries have resumed after a breakdown in August, when Canada withdrew from negotiations over proposed U.S. language that could restrict Canada’s future trade agreements, modify French-language requirements, and affect the auto sector. After the collapse, the U.S. president implemented 50 percent tariffs on several Canadian products, prompting Canada to impose matching retaliatory tariffs.

Current talks remain at the political level, with Trade Minister Dominic LeBlanc leading Canada’s side, while formal negotiations between trade representatives have yet to begin, according to lead negotiator Janice Charette. Sources indicated that both governments see an opportunity to reach an agreement before the midterms, though skepticism remains about completing a deal by that date.

Reuters cited sources saying the two nations are working on easing tariffs on Canadian steel and autos ahead of the elections, but noted that previous agreements under the president’s administration have sometimes been reversed shortly after implementation.