Canada says US trade deal not ready before midterms

Canada and the United States have increased the tempo of trade talks after President Donald Trump and Prime Minister Mark Carney spoke by phone on October 21. US Commerce Secretary Howard Lutnick and Canadian Trade Minister Dominic LeBlanc have spoken regularly since then, focusing mainly on tariffs for autos and steel.

A senior Canadian official told POLITICO on Tuesday that talks remain informal. Carney described the recent increase in engagement as “un petit intensification” while speaking to reporters in Ottawa on Monday.

“There are deals that are in the best interests of Canada, first and foremost, but also are in the interests of the United States.”

Carney said on Wednesday before a Liberal caucus meeting that Canada is not yet ready to finalise a trade agreement with the United States. He stressed that his government will pursue an agreement that delivers the right outcome for Canadians.

The prime minister said deals that benefit Canada first and foremost, and also serve US interests, could be pursued if they present themselves. He added that Canada is not at that position right now.

Neither side has dropped its original demands, according to several current and former officials and industry representatives. Outstanding issues include Canada’s request for lower auto tariffs and the US push for greater access to Canadian alcohol and dairy markets.

Ottawa and Ontario announced C$8.7 billion, about US$6.18 billion, in measures to support industries affected by US tariffs. Carney and Ontario Premier Doug Ford announced the package earlier this month.