Canadian Prime Minister Mark Carney announced Sunday that trade talks with U.S. President Donald Trump have shown progress toward a potential deal, with negotiators expected to work toward an agreement in the coming weeks. This development signals a shift after previous stalemates in a dispute marked by tariffs on both sides.

Carney described his conversation with Trump as constructive, building on recent discussions about a deal that could create jobs, lower costs for families, and protect Canadian culture and sovereignty. "Our teams will now be working in the coming weeks to deliver that outcome," Carney stated on social media.

The tone represents a departure from August, when Canada withdrew from negotiations due to U.S. demands that Carney deemed a threat to Canadian sovereignty and its language protections. Trump's administration responded by imposing tariffs on Canadian goods, leading to retaliatory measures from Canada.

While talks have resumed, progress has been inconsistent. Carney had previously indicated that an agreement was unlikely before Tuesday's midterm elections. Discussions have reportedly included potential relief from U.S. tariffs on Canadian steel and automobiles, though specific details remain undisclosed.

The trade dispute has emerged as a factor in the U.S. midterm elections, particularly in states like Michigan and Maine, where Republican candidates have faced pressure from local businesses impacted by the tariffs. In Michigan, Republican Senate candidate Mike Rogers has advocated for an end to the tariff conflict.

In parallel, Carney has been pursuing strategies to diversify Canada's export markets, including the formation of a new economic and security alliance with the European Union. This initiative aligns with Carney's goal to double Canadian exports outside the United States over the next decade.