Carney Says U.S. Is 'Asking Less and Offering More' as Trade Talks Heat Up

Prime Minister Mark Carney says Washington is now "asking less and offering more" in trade talks with Canada. It is the clearest sign in months that a deal to ease U.S. tariffs may be getting closer, CBC News reported.

The negotiations collapsed in August, when the two sides could not bridge their differences. Carney said Tuesday that the American position has since shifted.

"They're asking less and they're offering more, but we're not quite there," Carney said on the sidelines of the Commonwealth summit in Antigua. He said "more intense negotiations" have begun since the summer.

Red lines removed

When talks fell apart, Canadian officials said U.S. negotiators had objected to rules that make French-language content easy to find on streaming platforms such as Netflix, and had tried to restrict Canada's ability to strike trade deals with other countries. "Those are now off the table. That's very welcome," Carney said.

According to CBC, U.S. demands touching on French-language content and Canada's other trade agreements are now off the table. Those had been among Ottawa's firmest red lines.

Bloomberg also reported that Carney said the U.S. had lowered its demands. CBC reported he said Washington had "clearly shifted" on Canada's red lines around sovereignty, language and trade deals.

Autos remain the sticking point

Not everything is settled. CBC reported that the auto sector is likely to remain the biggest sticking point. The industry is deeply integrated across the border and has been hit hard by U.S. tariffs.

That matters a great deal to Ontario. The province is home to most of Canada's auto assembly plants and parts makers. Ontario's own fall economic statement warned that further U.S. tariffs could take effect as soon as Jan. 1. The provincial government has pointed to the trade fight as a major reason its deficit forecast has grown to $16.9 billion.

The August collapse triggered new tariffs on both sides, CBC reported.

U.S. politics in the background

The progress comes as Trump's Republican Party faces what could be a tough midterm showing in Tuesday's U.S. vote. CBC noted that pollsters have expected a "blue wave" as American voters voice frustration about the cost of living, driven in part by the war in Iran and tariffs.

A meeting ahead

Carney is expected to meet U.S. President Donald Trump at the APEC summit in China later this month, CBC reported. That meeting could be a deadline of sorts for the negotiators.

Trump has also signalled optimism. He told Fox News that a deal with Canada was near, according to CBC.

Carney stressed that more work is needed before any agreement is final. The talks also come as the prime minister tries to widen Canada's trade beyond the U.S. This week he was at the Commonwealth Heads of Government Meeting in Antigua, where he called for more trade with Caribbean and other Commonwealth nations.

What a deal could mean

For businesses in the GTA, from parts suppliers in Vaughan and Brampton to steel users in Hamilton, any easing of tariffs would bring relief after more than a year of uncertainty. Economists have also tied the trade war to the slower growth in both Ontario's forecasts and the Bank of Canada's outlook.

Until a text is signed, though, the details remain unknown. Read the full CBC report and Bloomberg's coverage.