Carney says Canada is not positioned for U.S. trade deal before midterms
Canada’s prime minister signalled no imminent pre-midterm agreement, extending uncertainty for businesses exposed to bilateral tariffs and potential relief talks.
Prime Minister Mark Carney said on October 28 that Canada was not currently in a position to conclude a trade agreement with the United States before the November 3 U.S. midterm elections. He said Ottawa would pursue agreements that serve Canadian interests if they become available, but indicated that the necessary conditions for a near-term deal had not yet been met. [1]
The statement is a more cautious official signal on timing after reports that previously stalled discussions had resumed at the political level. The talks had broken down in August after Canada left the negotiations, with Carney subsequently saying the U.S. had sought provisions that would constrain Canada’s ability to pursue agreements with other countries, weaken French-language requirements and harm the auto sector. [1]
The current engagement remains political rather than a return to formal bargaining between trade officials. Canada-U.S. Trade Minister Dominic LeBlanc has been leading Canada’s side in the recent discussions, while Canada’s lead negotiator, Janice Charette, said formal negotiations between trade representatives had not yet taken place. That distinction leaves the path to a detailed agreement—and to any tariff changes—unsettled. [1]
Tariffs remain central to the negotiating environment. After the August collapse, President Donald Trump put previously threatened 50 per cent tariffs on certain Canadian products into effect, and Ottawa responded with dollar-for-dollar retaliatory tariffs, according to Global News. The report also said Reuters, citing Canadian and U.S. sources, had reported work toward an arrangement that could ease U.S. tariffs on Canadian steel and automobiles ahead of the elections; however, Carney’s remarks do not confirm that such an arrangement is close. [1]
For importers, exporters and manufacturers, the immediate development is not a new tariff measure but a reduced expectation that a comprehensive political deal will be completed before the election. Companies facing duties or retaliatory measures therefore still lack a confirmed timetable for relief, even as Canada says it remains open to an agreement on acceptable terms. [1]
This is a significant negotiating-status update because Carney’s October 28 statement lowers confidence in a comprehensive agreement before the November 3 midterms, leaving firms exposed to the existing tariff and retaliation framework for longer. The report identifies steel and automotive tariff relief as a subject of discussions, but neither a deal nor a concrete tariff change was confirmed, limiting the significance rating to a mid-level assessment. [1]