Canada and US Signal Progress on Trade Deal as Midterm Elections Loom
Written by AI from aljazeera.com's report. Not checked by a person.
Canadian Prime Minister Mark Carney announced progress toward a Canada-US trade agreement after reporting a conversation with President Donald Trump, with teams from both countries set to work in the coming weeks toward a deal.
Canadian Prime Minister Mark Carney announced on Sunday that talks toward a future Canada-US trade deal had moved forward following a conversation with President Donald Trump. "Good conversation with US President Donald Trump on the future of Canada-U.S. trade," Carney posted on X, adding that teams from both countries would be "working in the coming weeks to deliver that outcome" and that the announcement "builds on recent constructive discussions on the outlines of a mutually beneficial trade deal." The announcement came two days before the November 3 US midterm elections, in which the economic impact of tariffs — particularly in states such as Michigan and Maine — had become a campaign issue for Republican candidates. The two countries have been locked in an escalating trade war: in August, high-level talks collapsed and Trump imposed a 50% tariff on $20 billion worth of Canadian goods, roughly 5.5% of Canada's exports. Canada responded with equivalent levies on US steel, dairy, appliances, farm equipment, pulp and paper, and electronics. Trump said last week he expected a new agreement to be reached "pretty soon," though he offered no details. Separately, Canada has been pursuing trade diversification, including welcoming a European Union offer to become an "associate member" — a proposal Carney described as aiming for a "unique alliance" rather than conventional EU membership.
