US-Canada Trade Talks Are Picking Up Pace But No Deal Yet, Carney Says

(Bloomberg) -- Canadian Prime Minister Mark Carney said trade talks with the US have gained a bit of momentum, and suggested that any progress has been because the Trump administration has shown more flexibility.

Speaking to reporters in Ottawa on Monday, Carney said "there's a slight intensification" in trade discussions. That followed comments from President Donald Trump and one of his advisers over the weekend that the two nations were getting closer to some kind of agreement.

US and Canadian officials negotiated for weeks over the summer, but the talks broke down on Aug. 21, leading Trump to put 50% tariffs on about $20 billion worth of goods from Canada. Canada retaliated with counter-tariffs on a similar value of US products.

The Canadian prime minister said Monday he would still refuse to agree to what the US was offering in August, which would have kept US tariffs on steel, aluminum and autos but at lower rates. That round of talks collapsed in part over a disagreement about whether the US would extend tariff relief to medium- and heavy-duty trucks.

"We have very clear bottom lines, red lines, which meant that we were not willing to sign what was offered in August," Carney said. "To the extent any progress has been made, it's because the US is coming closer to our position."

White House economic adviser Kevin Hassett told Fox News on Sunday that trade negotiations with Canada were gaining steam. "I think it's very close to finally having a deal on that," he said, two days after the US modified some of its tariffs on imports from Canada to benefit Maine businesses following lobbying by Senator Susan Collins.

Talks have picked up between Commerce Secretary Howard Lutnick and Dominic LeBlanc, Canada's minister responsible for the negotiations with the US, in recent weeks and are ongoing, another US official said Sunday, adding that prospects remain unclear since the US doesn't believe Canada is offering enough yet.

Trump also told Detroit's Fox 2 channel on Sunday that "we're getting close to a deal, and a deal could happen that's going to be very good for everybody."