Carney says Canada-US trade talks advance as teams prepare a deal before midterms

Carney reports a call with Trump

On Sunday, 1 November, Canadian Prime Minister Mark Carney said on X that he had held a good conversation with US President Donald Trump about the future of trade between their countries. The prime minister's office confirmed that the two leaders spoke by phone on Saturday, 31 October. Carney said the exchange built on earlier talks about the broad outlines of a deal that would benefit both sides. Ottawa and Washington have been caught in an escalating trade war in which both have imposed billions of dollars in tariffs on each other's goods.

“This builds on recent constructive discussions on the outlines of a mutually beneficial trade deal.”

Carney added that teams from both countries would work toward that outcome in the coming weeks. The White House told POLITICO it welcomes continued engagement with Canada as the two sides finalise the details of a deal.

Deal timing and US pressure

An insider cited by Handelsblatt said an agreement could still come before the US midterm elections on 3 November, although Washington is pressing for further Canadian concessions. Howard Lutnick leads the talks for the United States and is in regular contact with Canada's minister Dominic LeBlanc, according to the same report. A statement from LeBlanc's ministry said Canada was in a constructive dialogue with the United States and was ready for a trade relationship that benefits both sides. On Friday, 30 October, the Wall Street Journal reported, citing insiders, that Washington wanted to lift the 50 percent tariffs on some Canadian agricultural and forestry products. The paper reported that the cut could be offset by higher duties on other Canadian goods, and that an order could follow the same day.

Tariff relief for border states

Senator Susan Collins said in a statement shortly after that report that nine product categories would be exempt from US tariffs, including blueberries, potatoes and apples. The Republican is seeking a sixth term in Maine, a state that leans Democratic. A White House official told the Wall Street Journal that any tariff announcements would come directly from the government and that any preliminary report was speculation. Northern states such as Michigan and Maine have long had close economic ties with Canada. Republicans will probably need to win those states on 3 November to defend their majority in the US Senate.

Stalled talks since August

Trade talks between Ottawa and Washington broke down in August. Trump then imposed a 50 percent levy on $20bn of Canadian goods, equal to 5.5 percent of Canadian exports. Canada answered with equivalent tariffs on US steel, dairy, appliances, farm equipment, pulp and paper, and electronics. Trump has said he expects a new agreement with Canada 'pretty soon', but he has offered no details. Canada has also sought to diversify its trade options and has welcomed a European Union offer to become an 'associate member'.

Key dates

The sequence of recent steps runs from the August breakdown to the midterm vote. The Wall Street Journal report came on Friday, 30 October, a day before the phone call on Saturday, 31 October. Carney's post followed on Sunday, 1 November, and the US midterm elections are on 3 November.

What comes next

Carney said the teams would work on the outcome in the coming weeks, and the White House has said it wants to finalise the details of a deal. The reported tariff changes have not been confirmed by the White House, which has said any announcement would come from the government itself. Whether any change arrives before the vote on 3 November remains unclear from the reporting so far.