Carney says Trump moving closer to Canada’s trade demands as midterms loom

TORONTO (AP) — Canadian Prime Minister Mark Carney said Monday that trade talks with U.S. President Donald Trump’s administration have picked up slightly, but any progress is because Washington is moving closer to Canada’s demands.

The comments come eight days before U.S. midterm elections, with White House economic adviser Kevin Hassett suggesting the countries are close to a deal.

“To the extent any progress has been made, it’s because the U.S. is coming closer to our position,” Carney said.

Trade Minister Dominic LeBlanc’s office said Canada remains in “constructive dialogue” with Washington.

Carney described a “slight, slight intensification” of discussions but said Canada’s negotiating position remained unchanged.

Asked how he could be sure U.S. President Donald Trump would “sign in pen” this time, after Carney previously warned that Washington’s signature was sometimes “written in pencil,” the prime minister replied, “I don’t know that.”

Canada rejected Washington’s terms in August after the countries appeared close to a deal. Carney said the offer crossed Canadian “red lines.” Trump subsequently imposed 50% tariffs on roughly $20 billion in Canadian goods, prompting retaliation and further trade restrictions.

Trump said Friday he would lift some 50% tariffs on Canadian goods while imposing new tariffs on dozens of other products. Two days later, he told a Michigan campaign rally that Canada was “willing to give us anything at this moment” and that a deal would be settled “pretty soon.” He told a Detroit television station an agreement could come before the midterms, although it might take months.

Trump’s tariffs have become an issue in closely watched Senate races. Republican candidate Mike Rogers says in a Michigan campaign ad that Canada is “not our enemy” and “we need to end this tariff war now.” In Maine, Republican Sen. Susan Collins pressed the Trump administration to ease tariffs on Canadian goods used by farmers and other businesses, with Washington announcing exemptions Friday.

Trump has repeatedly complained about the U.S. trade deficit with Canada, but energy more than accounts for the gap. The United States buys millions of barrels of Canadian oil daily, typically at a discount, and runs a trade surplus with Canada when energy is excluded.

Trump also wants automakers to move production from Canada to the United States, threatening an industry deeply integrated across the border for decades.

Trump’s trade war and repeated threats to make Canada the 51st U.S. state have pushed Carney to seek new markets, with a goal of doubling Canadian exports outside the United States over the next decade.

Carney hosts European Union leaders Thursday and Friday in Montreal to pursue closer economic and security ties. European Commission President Ursula von der Leyen has proposed making Canada the EU’s first associate member, a status that has yet to be defined.