The United States and Canada are nearing a resolution in their ongoing tariff dispute, according to the White House. Negotiations have gained momentum, and officials are optimistic about reaching an agreement.
Kevin Hassett, director of the White House National Economic Council, stated in an interview with Fox News that the discussions are "gathering steam" and that the countries are "very close" to finalizing a deal. This comes after President Trump imposed approximately 50% tariffs on about $20 billion worth of Canadian goods, including beer, cheese, and electronics, in late August. Canada retaliated with its own tariffs.
Hassett attributed the initial breakdown in negotiations to political developments in Canada, including its recent election and the province of Alberta's decision to separate, which he described as making it "essentially impossible to negotiate with the Canadians." However, he expressed confidence that a resolution is now within reach.
The trade conflict has had an impact on key U.S. Senate races in states like Michigan and Maine in the lead-up to the midterm elections. In an effort to de-escalate, President Trump had previously announced exemptions for several products, such as paper materials, machinery, plywood, and refrigeration equipment, effective October 30. Additional exemptions were later extended to items like road salt imports.
President Trump indicated that a deal could be finalized before the upcoming election, though he also cautioned that it might take months. "I want to make the right deal," Trump said, emphasizing a long-term perspective. "When the deal is made, it’ll be a great deal for America." He noted that Canada had benefited financially from trade with the U.S. for years and that the current administration is working to rebalance that relationship.
Discussions have involved Commerce Secretary Howard Lutnick and his Canadian counterpart, Dominic LeBlanc. Hassett also highlighted the administration's focus on the fisheries sector, particularly for Maine and Alaska, citing efforts to address European regulations that had impacted lobster exports from Maine. The White House has made supporting these fishermen a key priority.
Canadian Prime Minister Mark Carney has engaged in direct negotiations with the U.S. administration, stating his readiness to negotiate but insisting on terms that are "in the interests of Canadians."