Canada Says U.S. Talks Intensified, but Ottawa's Red Lines Stand

Canadian Prime Minister Mark Carney said trade discussions with the United States have picked up slightly, but he attributed any movement to Washington adopting more of Ottawa's demands.

Carney made the comments Monday, eight days before U.S. midterm elections. He said Canada's negotiating position has not changed. "To the extent any progress has been made, it's because the U.S. coming closer to our position," Carney said. He described a "slight, slight intensification" of discussions. Trade Minister Dominic LeBlanc's office said Canada remains in "constructive dialogue" with Washington.

Carney also said he could not confirm that President Donald Trump would uphold a new agreement. When asked if Trump would "sign in pen," after Carney had previously warned that Washington's signature was sometimes "written in pencil," Carney replied: "I don't know that."

Canada rejected U.S. terms in August after the two countries appeared near a deal, with Carney saying the offer crossed Canadian "red lines." Trump then imposed 50% tariffs on roughly $20 billion in Canadian goods, which prompted Canadian retaliation. On Friday, Trump said he would lift some of those 50% tariffs while placing new tariffs on dozens of other products. Two days later, at a Michigan campaign rally, Trump said 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, though it might take months.

The tariffs have become an issue in 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 asked the Trump administration to ease tariffs on Canadian goods used by farmers and other businesses, and Washington announced exemptions Friday.

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.