Carney Says U.S. Moving Closer to Canada’s Position in Trade Talks

OTTAWA – November 1, 2026

Prime Minister Mark Carney said trade discussions with the United States have intensified slightly, but any progress has come because Washington is moving closer to Canada’s demands.

The comments came days before U.S. midterm elections. White House economic adviser Kevin Hassett had suggested the two countries were close to a deal. Carney described the change in tone as limited and said Canada’s negotiating position had not shifted.

Canada continues to face 50 percent U.S. tariffs on a range of goods. Trump has said he would lift some of those tariffs while imposing new ones on other products. Carney has previously said Ottawa is not in a position to conclude a new agreement on terms that cross Canadian red lines. He has also noted that even if a deal is reached, he cannot be certain the U.S. president would honour it.

Trade Minister Dominic LeBlanc’s office said Canada remains in constructive dialogue with Washington. No new agreement has been announced. The talks continue against the backdrop of repeated U.S. threats to make Canada the 51st state and pressure on automakers to shift production south.

Carney has said Canada’s goal is to double exports outside the United States over the next decade. The European track, critical minerals development, and efforts to designate major projects of national interest have been part of that approach. The Pacific Link pipeline proposal from Alberta to the West Coast was designated a project of national interest earlier this fall, with the federal and Alberta governments expected to hold equal ownership shares and Indigenous communities offered a minimum 10 percent stake.

The upcoming federal budget, scheduled for November 5, will be the second under Carney. Finance Minister François-Philippe Champagne has said it will outline next steps in the government’s plan. The Parliamentary Budget Officer has projected higher deficits than previously forecast and has raised questions about the government’s ability to meet some of its fiscal anchors on the original timeline.

For resource regions, including northwestern Ontario, the combination of U.S. tariffs and Ottawa’s diversification efforts matters for mining, forestry, and related supply chains. No specific new measures for the northwest were tied to the latest trade comments.

Carney’s statement that the U.S. is moving closer to Canada’s position is the most direct public claim of progress in weeks. It remains unclear what concrete concessions, if any, have been offered. Officials on both sides have avoided detailing the current state of negotiations.

The midterm elections in the United States add another variable. Trade policy has been a recurring issue in U.S. political debate, and outcomes next week could affect the room available for any agreement. Canadian officials have said they are prepared to continue talks regardless of the electoral calendar.

No timeline has been given for a possible deal. The government’s public line has remained that Canada will not accept terms that undermine its key sectors or regulatory standards. Whether the slight intensification Carney described produces a lasting result will depend on whether both sides can find terms they are willing to sign and enforce.