Canadian Prime Minister Mark Carney said the US is “asking less” and “offering more” in trade negotiations, as the neighboring nations once again work on a potential deal after a previous round of talks collapsed.
“Some of our red lines have clearly shifted, around language, around culture, around sovereignty, our ability to have trade deals. In other words, those are now off the table. That’s very welcome,” Carney told reporters during a trip to Antigua and Barbuda, where’s he attending a meeting of Commonwealth leaders.
In August, the US and Canada were close to an agreement to reduce tariffs and other trade barriers, but it fell apart, leading each side to put 50% duties on a list of products from the other.
At the time, Carney said the US had sought to curtail Canadian protections around the French language and culture, and to restrain its ability to sign trade deals with other partners. US officials accused Carney of blowing up the talks for domestic political reasons, with Commerce Secretary Howard Lutnick saying he didn’t care about Canadian language rules. English and French are Canada’s two official languages.
“There are other important issues on which we still need to make progress,” Carney added. “If I were to paraphrase it, they’re asking less and they’re offering more — but we’re not quite there.”
The feud between the two countries erupted nearly two years ago after President Donald Trump was reelected, announced plans for tariffs and said he’d like to make Canada a 51st state. But both sides have recently sounded more positive on the prospect of a detente that would ease trade frictions.
Earlier on Tuesday, Trump said the US will make a “great deal” with Canada “soon.” He has hinted at elements of a possible deal, stating the US would have tariff-free access to fertilizers and that Canada would build and pay for a southbound oil pipeline.
Canada has not put any export taxes or duties on potash, a key fertilizer input, which it supplies in large quantities to the US. The pipeline project that Trump was referring to already has commercial backers, and the Canadian firm involved, South Bow Corp., is targeting a final investment decision next year.
Carney didn’t share specific details about negotiations related to the auto sector, which proved a critical stumbling block last time. Despite decades of deep cross-border supply-chain integration, Trump has said he doesn’t want the US to import Canadian vehicles.
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