The United States and Canada are moving closer to a trade agreement as tariff negotiations between the two countries gather momentum, White House economic adviser Kevin Hassett has said, with the issue carrying political significance ahead of the November 3 US midterm elections.“The negotiations have picked up; they’re gathering steam,” Hassett, director of the White House National Economic Council, said during an appearance on Fox News’ The Sunday Briefing.He added that a deal was “very close” and that Commerce Secretary Howard Lutnick had been speaking with his Canadian counterparts throughout the week.US President Donald Trump also expressed hope about the negotiations, telling Detroit’s Fox 2 that an agreement could be reached within a couple of months, potentially before the midterm elections.“We’re getting close to a deal, and a deal could happen that’s going to be very good for everybody,” Trump said.According to the New York Post, Trump indicated that while an agreement could come before the election, the timeline would depend on whether the terms were favourable to the United States.“I want to make the right deal,” Trump said, adding that he was focused on the long term rather than securing a quick agreement.The negotiations come after trade talks between Washington and Ottawa broke down in August, prompting both countries to impose retaliatory measures. The dispute has affected businesses and consumers on both sides of the border and emerged as a political issue in key battleground states ahead of the November 3 elections.Hassett attributed the earlier difficulties to political developments in Canada, saying the recent Canadian election and tensions involving Alberta had made negotiations particularly difficult.Canadian Prime Minister Mark Carney said last week that he had spoken with Trump about trade and remained willing to negotiate, but stressed that any agreement must serve Canada’s interests.Carney is “ready to sit down and negotiate when the US is”, according to his remarks, while insisting that Ottawa would seek “a deal that’s in the interests of Canadians”.Canada’s minister responsible for US trade negotiations, Dominic LeBlanc, has also been in discussions with Lutnick in recent weeks. A US official told Bloomberg on Sunday that the talks were continuing, although the prospects for an agreement remained uncertain because Washington believed Canada had not yet offered enough.The official, who spoke on condition of anonymity to discuss sensitive negotiations, said Trump would approve only an agreement that benefited the United States.
Trump eases tariffs on some Canadian products
The White House has recently moved to ease tariffs on selected Canadian goods, including following lobbying by Republican Senator Susan Collins of Maine.Collins said on Friday that the administration would remove 50% tariffs on Canadian plywood, bleached paper, cartons and specialised agricultural machinery, with the changes expected to benefit Maine’s rural and coastal economies.Trump had also exempted road salt and other Canadian products from tariffs last month after a request from Collins. At the same time, his administration added duties on certain other goods.The moves come as Collins faces a competitive re-election contest in Maine, where the economic effects of the trade dispute have become a campaign issue. Her Democratic challenger, Troy Jackson, criticised the senator for seeking credit for tariff relief, arguing that she had acted because her seat was at risk.Hassett defended the administration’s approach, saying Trump had prioritised Maine’s interests.“President Trump has put the citizens of Maine first,” he said.The tariff dispute has also become politically significant in Michigan, another battleground state where Republicans face pressure ahead of the midterms. Trump campaigned in the state on Sunday, highlighting the possibility of a trade agreement with Canada.
White House highlights fisheries as priority
Hassett also offered a glimpse into the administration’s economic priorities, saying support for fisheries in Maine and Alaska had received particular attention.“Almost above everything else that we’ve done at the National Economic Council has been working on Maine and Alaska fisheries,” he said, referring to European regulations that had affected exports of Maine lobster.Hassett said Trump had negotiated a temporary arrangement with European countries that allowed Maine fishermen to continue shipping their products to Europe.The administration has also stepped up its focus on the seafood industry. The US Department of Agriculture established its first Office of Seafood in April, while the White House unveiled an “America First Seafood Strategy” on Friday.The developments highlight how trade policy has become intertwined with domestic political concerns as the administration seeks to support industries and businesses in states crucial to the midterm elections.For now, however, the US-Canada negotiations remain unresolved. While Trump and Hassett have expressed confidence that an agreement could be within reach, Canadian officials have maintained that any deal must protect the country’s economic interests.
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