Carney says Canada not yet ready to agree to U.S. trade deal

OTTAWA · Prime Minister Mark Carney stated on Wednesday that Canada is not currently in a position to agree to a trade deal with the United States. Speaking ahead of a Liberal caucus meeting, he said his government will pursue a deal only when it suits Canadian interests. "If those deals present themselves, we will pursue them. But we're not at that position right now," Carney told reporters. His comments come as U.S. midterm elections approach next Tuesday.

Carney emphasized that Canada is prepared to sign an agreement that serves its citizens. "We think there's deals that are in the best interests of Canada, first and foremost, but also are in the interests of the United States," he said. He noted the government has clear red lines that prevented it from accepting a U.S. offer in August. Progress toward those conditions would improve the prospect of a deal, he added.

Trade negotiations between the two countries collapsed in August, leading to retaliatory tariffs. The United States imposed steep tariffs on Canadian goods, and Ottawa responded with dollar-for-dollar levies. Carney has previously said the U.S. made last-minute demands that would restrict Canada's other trade agreements and harm its auto sector. Since then, talks have intensified at the political level but formal negotiations have not resumed.

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U.S. President Donald Trump has recently suggested progress is being made. "We'll have that settled pretty soon. They're willing to give us anything at this moment," Trump said at a rally in Michigan on Sunday. However, sources familiar with the discussions say key elements remain unresolved. One source told Radio-Canada, "We are not on the verge of an agreement just yet." The Canadian side has described the recent progress as limited.

Sources told Global News the Canadian government sees a window to reach a deal before the November 3 midterms, which could shift control of Congress. Canada-U.S. Trade Minister Dominic LeBlanc has been leading the political-level discussions. Canada's lead negotiator, Janice Charette, said formal talks between trade representatives have not yet taken place. Despite the renewed dialogue, sources expressed skepticism that an agreement can be finalized before election day.

With files from The Canadian Press, CityNews and CBC News