Carney Says U.S. Is Moving Toward Canada's Position in Trade Talks as Midterms Near

Canadian Prime Minister Mark Carney said on Monday that trade talks with the administration of U.S. President Donald Trump have picked up slightly, but he credited any movement to Washington shifting toward Canada's demands rather than the other way around.

"To the extent any progress has been made, it's because the U.S. is coming closer to our position," Carney said. He described a "slight, slight intensification" in the discussions and stressed that Canada's negotiating stance had not changed.

His remarks came eight days before the U.S. midterm elections. White House economic adviser Kevin Hassett has suggested the two countries are close to a deal, while Trade Minister Dominic LeBlanc's office said Canada remains in "constructive dialogue" with Washington.

Carney also acknowledged uncertainty over whether Trump would stand by any new agreement. He had previously warned that Washington's signature was sometimes "written in pencil." Asked whether the president would "sign in pen" this time, he answered: "I don't know that."

The two sides appeared close to a deal earlier this year, but Canada rejected Washington's terms in August. Carney said the offer crossed Canadian "red lines." Trump then imposed 50% tariffs on roughly $20 billion in Canadian goods, which led to retaliation and further trade restrictions.

On Friday, Trump said he would lift some of the 50% tariffs on Canadian goods while placing new tariffs on dozens of other products. Two days later, at a Michigan campaign rally, he said Canada was "willing to give us anything at this moment" and predicted a deal would be settled "pretty soon." He told a Detroit television station that an agreement could arrive before the midterms, though it might take months.

The tariffs have become a factor in closely watched Senate races. In a Michigan campaign ad, Republican candidate Mike Rogers says Canada is "not our enemy" and that "we need to end this tariff war now." In Maine, Republican Sen. Susan Collins urged the administration to ease tariffs on Canadian goods used by farmers and other businesses, and Washington announced exemptions Friday.

Trump has repeatedly criticized the U.S. trade deficit with Canada, but energy more than accounts for the gap. The United States buys millions of barrels of Canadian oil each day, typically at a discount, and runs a trade surplus with Canada when energy is left out. Trump also wants automakers to shift production from Canada to the United States, which would upend an industry that has been closely integrated across the border for decades.

The trade war and Trump's repeated threats to make Canada the 51st U.S. state have pushed Carney to look for new markets, with a goal of doubling Canadian exports outside the United States over the next decade. He hosts European Union leaders in Montreal on Thursday and Friday to pursue closer economic and security ties. European Commission President Ursula von der Leyen has proposed making Canada the EU's first associate member, a status that has yet to be defined.