The US and Canada move closer to a trade deal after prolonged tariff conflict
The US and Canada resumed active trade negotiations and have moved closer to reaching an agreement that could ease the tariff conflict between the two countries. After several months of confrontation, Washington reports significant progress in consultations with Ottawa.
This was announced on October 25 by Kevin Hassett, Director of the White House National Economic Council, in an interview with Fox News, Bloomberg reports.
According to Hassett, last week US Commerce Secretary Howard Lutnick actively engaged with Canadian officials. The talks gained momentum, and the parties, in the view of the adviser to President Donald Trump, are already close to reaching a deal.
Hassett attributed the earlier delays to political events in Canada, namely the elections and the vote on the possible secession of the province of Alberta. In his assessment, the domestic political uncertainty had previously significantly complicated the negotiation process.
US President Donald Trump also expressed confidence in the possibility of reaching a trade deal. At the same time, he emphasized that Washington seeks terms favorable to the American economy and will not compromise at any cost.
The US begins to review tariffs on Canadian goods
The revival of negotiations comes after the White House's decision to partially adjust the 50 percent tariffs on certain categories of Canadian imports.
On October 23, the Trump administration announced the removal of additional tariffs for certain types of plywood, paper products, packaging materials, and industrial and agricultural equipment.
Meanwhile, the American authorities expanded the list of goods subject to elevated tariffs. They added certain types of industrial valves, carpets, and other products.
The new tariff rules will take effect on October 30. However, they do not mean a general removal of American trade restrictions on Canada.
The trade conflict between the countries escalated in August, when negotiations on a new agreement ended without result. After that, Washington imposed additional 50 percent tariffs on a number of Canadian goods, and Ottawa responded with its own restrictions on American imports.
The tariff standoff has affected manufacturers of industrial equipment, the automotive industry, metallurgy, agriculture, and other sectors whose enterprises depend on cross-border supplies.
Canada is ready for a deal, but not on any terms
According to Canadian television network CTV News, sources in government and business circles confirm the intensification of talks. They point to the White House's interest in reaching an agreement ahead of the midterm elections to the US Congress on November 3.
Canada's Minister responsible for trade relations with the US, Dominic LeBlanc, confirmed Ottawa's readiness to continue constructive dialogue to reach a mutually beneficial agreement.
Canadian Prime Minister Mark Carney previously stated that his government is ready to return to full-fledged negotiations, but the future deal must take into account the economic interests of Canadian businesses and workers.
Despite the optimistic statements of American officials, significant differences remain. According to Bloomberg, Washington believes that Canada has not yet offered sufficient concessions for the final approval of the document.
For businesses, a possible resolution of the trade conflict would mean reducing uncertainty regarding the cost of imports, the stability of supply chains, and the investment plans of companies operating in both countries' markets.
At the same time, the specific terms of the future agreement and the date of its possible signing remain unknown. Neither side has provided official confirmation of the negotiations' completion.
Based on materials from: Bloomberg, White House, CTV News
