Carney and Trump claim progress in trade talks before midterms
The two leaders discussed a potential deal on Keystone XL and tariffs, though both acknowledged final terms remain unresolved.
By Anthony Shevchenko ·
Canadian Prime Minister Mark Carney reported a constructive phone call with U.S. President Donald Trump on Sunday regarding a trade agreement.
Carney stated that the conversation focused on job creation, lower family costs, and the protection of Canada's languages and sovereignty. He confirmed that negotiators will work toward a final agreement in the coming weeks. The talks occur just days before U.S. midterm elections in Michigan and Maine, where Senate races are underway.
Trump described the status of the negotiations after landing in Iowa for a rally. He said the two nations have the concept of a very good deal and that they are now very close to having an agreement. The president noted that the U.S. has lost money to Canada for many years. He specifically mentioned that the potential agreement involves the construction of the Keystone XL pipeline and could erase tariffs paid by U.S. farmers on Canadian products.
Trump asserted that part of the agreement means U.S. farmers will have to pay no tariffs. However, his comments indicated that final details had not yet been established. The U.S. president characterized the potential deal as great for American farmers and the country, while noting it would be fine for Canada.
This positive tone marks a shift from August when Canada walked away from talks. At that time, Canada rejected U.S. demands that Carney said threatened Canadian sovereignty and the auto industry. Trump responded by imposing 50% tariffs on roughly $20 billion in Canadian goods, which led to Canadian retaliation. Carney said last week that talks resumed because Washington was moving closer to Canada's position.
Despite the recent optimism, Carney said as recently as Wednesday that the countries were not yet in a position to reach an agreement before Tuesday's elections. The two sides are discussing relief from U.S. tariffs on Canadian steel and automobiles, but no specific details have been announced. Michigan Republican Senate candidate Mike Rogers has called for an end to the tariff war, citing the political risks in border states.
Daniel Béland, a political science professor at McGill University, said recent tariff adjustments show the White House recognizes the political risks of its trade war. Robert Bothwell, a historian at the University of Toronto, cautioned against reading too much into the improved tone. He compared the apparent thaw to a passing weather system bringing five minutes of variable sunshine and rain later. Canadian Conservative opposition leader Pierre Poilievre urged Carney to deliver real results, saying Canadians could not afford to wait.
