Trump, Carney revive U.S.-Canada trade talks ahead of midterms

Canadian Prime Minister Mark Carney said he and President Donald Trump agreed to pursue a new trade agreement in the coming weeks, signaling renewed negotiations after talks broke down in August.

Carney disclosed the conversation Sunday, two days before U.S. midterm elections that could shift control of Congress. Polls suggest Democrats are favored to capture the House, while control of the Senate remains uncertain.

For investors, a potential agreement could ease trade uncertainty affecting North American manufacturers, particularly automakers and suppliers exposed to tariffs and cross-border supply chains. However, significant disagreements remain over tariff relief and Canadian sovereignty.

Negotiations collapsed in August partly over Canada's demand to extend proposed U.S. tariff exemptions to medium and heavy-duty vehicles. The countries also clashed over allegations that Washington sought restrictions on French-language use, which the Trump administration denied.

Carney said negotiators would work toward an agreement supporting employment and affordability while protecting Canadian sovereignty and cultural identity. The White House confirmed its willingness to continue discussions.

Meanwhile, Carney has sought to diversify Canada's trading relationships, hosting European Union representatives in Montreal last week. He has also indicated that the U.S. election results are unlikely to substantially alter Trump's trade policies.

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