White House Says U.S. and Canada Are “Very Close” to a Trade Deal as Washington Prepares to Ease Tariffs
The United States and Canada are nearing an agreement that could ease months of escalating tariff tensions, the White House signaled on Sunday, though officials in the two countries offered sharply different readings of how close a deal actually is.
A top economic adviser to President Donald Trump said the two sides were “very close” to a trade pact, describing the negotiations as advancing after a prolonged stalemate. The optimistic framing from Washington came even as another U.S. official cautioned that Canada had not yet put enough on the table, underscoring that significant gaps remain despite the upbeat public messaging.
Canadian officials have been more restrained. The government of Prime Minister Mark Carney, which suspended trade talks earlier this year amid the dispute over U.S. tariffs, has not confirmed that an agreement is imminent, and commentary in Canada openly questioned what deal Washington was referring to. The mismatch highlighted the uncertainty still surrounding one of North America’s most important trading relationships.
The negotiations have been complicated by domestic politics on both sides of the border. The Trump adviser pointed to a recent referendum in the Canadian province of Alberta as a factor slowing progress. On October 20, Albertans voted against moving toward separation from Canada, rejecting a push for secession and choosing to remain part of the country. Washington’s reference to the vote suggested that internal Canadian political dynamics had become entangled with the cross-border trade file.
The talks are unfolding against a backdrop of punishing tariffs. The United States has imposed duties of up to 50 percent on a range of Canadian goods, including products such as dairy, alcoholic beverages and motor vehicles, measures that have disrupted supply chains and raised costs for businesses and consumers in both nations. Canada has responded with its own retaliatory measures over the course of the dispute.
Even as negotiators worked toward a broader settlement, Washington prepared to roll back part of the tariff regime. The U.S. is set to revise its tariff list on October 30, exempting nine categories of Canadian products from the 50 percent duties. The adjustment is expected to provide relief to some exporters and importers, though it stops short of dismantling the wider tariff structure that has defined the conflict.
For Canada, the stakes are considerable. The United States is its largest trading partner, and sustained tariffs threaten key industries including steel, automobiles and agriculture. Carney has urged provincial leaders to ease some countermeasures, including restrictions on American alcohol, as a gesture that could help reset relations.
Analysts cautioned that an announcement of progress is not the same as a signed agreement, and that previous rounds of talks between the two governments have broken down after appearing close to resolution. Whether the latest signals from Washington translate into a durable deal — or another stalled round of negotiations — is likely to become clearer in the days surrounding the October 30 tariff changes.
For now, both governments remain publicly committed to reaching an accord, even as they disagree on how near that outcome may be.
Source: BNN Bloomberg