Carney says U.S. offers shift as Canada resists Washington's terms

Canadian Prime Minister Mark Carney said trade discussions with the Trump administration have seen a slight intensification, attributing any progress to Washington moving closer to Canada's demands. His comments came eight days before U.S. midterm elections, with White House economic adviser Kevin Hassett indicating the countries are nearing a deal.

Carney stated, "To the extent any progress has been made, it's because the U.S. coming closer to our position." He noted that Canada's negotiating stance remains unchanged. Trade Minister Dominic LeBlanc's office reported Canada remains in "constructive dialogue" with Washington.

The talks follow a breakdown in August when Canada rejected U.S. terms, with Carney stating the offer crossed Canadian "red lines." Subsequently, President Donald Trump imposed 50% tariffs on roughly $20 billion in Canadian goods, prompting retaliation. On Friday, Trump announced he would lift some 50% tariffs on Canadian goods while applying new duties to dozens of other products. Two days later, at a Michigan rally, Trump remarked that Canada was "willing to give us anything at this moment" and predicted a deal would be settled "pretty soon."

Carney acknowledged uncertainty regarding the durability of any agreement, replying "I don't know that" when asked if Trump would "sign in pen" after Carney previously warned Washington's signature was sometimes "written in pencil."

The tariffs have influenced Senate races. Republican candidate Mike Rogers stated in a Michigan campaign ad that Canada is "not our enemy" and that the tariff war must end. In Maine, Republican Sen. Susan Collins urged the administration to ease tariffs on Canadian goods used by farmers and businesses, leading to exemptions announced Friday.

Trump has criticized the U.S. trade deficit with Canada, though energy accounts for the gap. The U.S. imports millions of barrels of Canadian oil daily, usually at a discount, resulting in a surplus when energy is excluded from calculations. Trump also seeks to move automaker production to the U.S.

Carney is hosting European Union leaders in Montreal on Thursday and Friday to pursue economic and security ties. European Commission President Ursula von der Leyen proposed making Canada the EU's first associate member, a status not yet defined.