Canadian Prime Minister Mark Carney said on Sunday that he had a constructive conversation with US President Donald Trump about a potential trade deal, and that negotiators would work in the coming weeks toward an agreement — signalling fresh momentum in a bitter trade dispute just days before the US midterm elections on Tuesday, November 3.

Source: Associated Press

Confirming the conversation in a post on social media, Carney said it built on recent constructive discussions on the outlines of a mutually beneficial deal. “This builds on our recent constructive discussions on the outlines of a mutually beneficial trade deal that would create jobs for our workers, boost affordability for families, and fully respect Canada’s languages, culture, and sovereignty,” he wrote. “Our teams will now be working in the coming weeks to deliver that outcome.”

Source: Global News

The upbeat assessment marks a shift from August, when Canada walked away from negotiations after rejecting US demands that Carney said threatened Canadian sovereignty, French-language protections and the auto industry. Trump responded with 50 per cent tariffs on roughly $20 billion in Canadian goods, and Canada retaliated with counter-duties.

Progress since then has been uneven. As recently as Wednesday, Carney said the two countries were not yet in a position to reach an agreement before Tuesday’s midterm elections, and he told reporters Canada was after the right deal rather than a quick one. The two sides have been discussing possible relief from US tariffs on Canadian steel and automobiles, although no details of a potential agreement have been announced.

Trump’s trade war with Canada has become an issue in the November 3 midterms, particularly in Michigan and Maine, where Republican candidates have faced pressure over tariffs hurting local businesses. Michigan Republican Senate candidate Mike Rogers has called for an end to the tariff war. Trump had yet to comment publicly on Sunday about Carney’s remarks; at a campaign rally in South Carolina on Thursday, he suggested Canada had been “treating us extremely nicely recently.”

The trade war, and Trump’s repeated threats to make Canada the 51st US state, have pushed Carney to seek new markets. Canada and the European Union launched a new economic and security alliance on Friday, as Ottawa pursues a goal of doubling Canadian exports outside the United States over the next decade. The renewed talks also come days before the Canadian federal government presents its latest budget on Thursday.