Canada and US struggle to make progress in latest trade talks as midterms loom

Discussions regarding trade between Canada and the United States have seen only modest advancement, according to a Canadian official familiar with the talks on Wednesday.

With President Donald Trump‘s Republican Party risking losing control of Congress in next week’s midterm elections, tariffs on Canadian imports have become a political liability, prompting Republican candidates in border states to demand an end to the trade war.

Prime Minister Mark Carney stated on Monday that talks to negotiate a deal to ease American tariffs on Canadian automobiles and steel had experienced “a slight intensification.”

However, Carney insisted any progress reflects Washington moving toward Canada’s demands, not Ottawa concessions.

“To the extent any progress has been made, it’s because the U.S. is coming closer to our position,” Carney said.

On Saturday, during a speech supporting Democratic candidates Abdul El-Sayed and Jocelyn Benson, former President Barack Obama mocked Trump’s tariff war with America’s northern neighbor, jokingly referring to Canada as a “well-known evil empire.”

“That historical adversary of ours, Canada,” he said sarcastically. “It’s your neighbor. It’s a few minutes’ drive over the bridge,” Obama continued.

“These are the people who gave us Martin Short and maple syrup,” he said. “They are the nicest people.”

Mike Rogers, the Republican candidate in Michigan running against El-Sayed, said in a campaign ad that Canada is “not our enemy” and “we need to end this tariff war now.”

Recent negotiations have concentrated on measures applied under Section 232 of U.S. trade law, encompassing duties of up to 50% on Canadian steel and 25% on cars.

The U.S. Commerce Department, which oversees Section 232 tariffs, did not immediately reply to a request for comment.

Trump predicted on Sunday that the dispute would be resolved “soon,” though he offered no specifics.

In August, trade talks fell apart between the two countries, leading Trump to impose 50% tariffs on $20 billion worth of Canadian goods, with Canada setting retaliatory penalties.

“They asked too much and offered too little,” Carney said at the time.