Trump Administration Says U.S. and Canada Are ‘Very Close’ to Major Trade Deal as Tariff Negotiations Gain Momentum

President Trump’s administration says the United States and Canada are approaching a major trade agreement that could bring an end to months of escalating tariff disputes between the neighboring countries, with White House officials reporting significant progress in negotiations.

National Economic Council Director Kevin Hassett revealed Sunday that discussions between American and Canadian officials have accelerated in recent days, raising expectations that an agreement could be reached after months of economic tensions.

“The negotiations have picked up; they’re gathering steam,” Hassett said during an appearance on Fox News’ The Sunday Briefing.

“I think it’s very close to finally having a deal on that,” he added.

The announcement follows months of negotiations over tariffs imposed by President Trump on Canadian imports, part of his administration’s broader effort to secure more favorable trade arrangements for American manufacturers, farmers and workers.

Commerce Secretary Howard Lutnick has been leading discussions with Canadian officials, including Dominic LeBlanc, the Canadian minister responsible for trade negotiations with the United States.

Hassett said Lutnick had been communicating with his Canadian counterparts throughout the previous week, suggesting that negotiations were making progress after an extended period of uncertainty.

The White House economic adviser attributed earlier difficulties to political developments in Canada, including election-related disruptions and separatist tensions involving Alberta.

According to Hassett, those developments complicated efforts to reach an agreement during the summer.

The dispute intensified in August when President Trump imposed tariffs of approximately 50% on roughly $20 billion in Canadian imports after negotiations between the two countries broke down.

The affected products included beer, cheese, electronics and other goods imported into the United States.

Canada responded with retaliatory tariffs targeting American exports, creating additional pressure on businesses operating across the border.

Trump has repeatedly accused Canadian officials of taking advantage of American trade policies and maintaining barriers that disadvantage U.S. producers.

The president has argued that tariffs provide negotiating leverage while encouraging companies to expand manufacturing operations inside the United States.

Speaking with Fox 2 Detroit on Sunday, Trump expressed confidence that an agreement was approaching.

“We’re getting close to a deal, and a deal could happen that’s going to be very good for everybody,” the president said.

Trump suggested that an agreement could potentially be completed before the November 3 midterm elections, although he acknowledged that negotiations might continue for several more months.

“I want to make the right deal,” Trump said. “I’m not a short-term person, I’m a long-term. When the deal is made, it’ll be a great deal for America.”

The president also repeated his concerns about the longstanding economic relationship between the two countries.

“Canada has been making $90 billion a year off us for years and years,” Trump said. “They’ve taken advantage of our country, but we’re getting close to a deal.”

His $90 billion figure reflects the president’s characterization of the trade relationship rather than an independently established measure of Canada’s annual economic gains from trading with the United States.

Despite his criticism of Canadian trade policies, Trump emphasized that he maintains a favorable view of the country itself.

“I love Canada; I love everything about it, other than some of the leaders,” he said.

Canadian Prime Minister Mark Carney has taken a more cautious position, insisting that Ottawa will not accept an agreement that fails to protect Canadian economic interests.

Carney recently confirmed that he had spoken with Trump and expressed willingness to resume negotiations when both governments were prepared to reach mutually acceptable terms.

The Canadian leader has also indicated that he is willing to wait months, or longer if necessary, rather than accept an agreement he considers unfavorable.

LeBlanc’s office confirmed Sunday that Canada remains engaged in discussions with American officials and is prepared to continue negotiating in good faith.

Although the White House has expressed optimism, neither government has announced a finalized agreement or a confirmed signing date.

The latest developments come as the Trump administration makes targeted adjustments to its tariff policies.

On Friday, the White House announced that certain Canadian products would be removed from the list of goods subject to additional 50% tariffs.

The exemptions include plywood sheets, selected paper products, packaging materials, refrigeration equipment and specialized machinery.

The changes are scheduled to take effect October 30.

However, the administration is simultaneously adding other Canadian products to the tariff list, including certain valves, carpets and waste products.

The White House said the modifications are intended to address Canadian trade practices while limiting unnecessary economic burdens on American industries.

The adjustments follow requests from Republican lawmakers representing states with significant economic ties to Canada.

Sen. Susan Collins of Maine has been particularly active in seeking relief for businesses and agricultural producers affected by the tariffs.

Collins announced Friday that she had secured exemptions covering several categories of Canadian products important to her state’s economy.

The senator previously obtained relief for Canadian road salt, cement and wood pulp, all of which are important to businesses and communities in Maine.

The latest exemptions include materials used in agriculture, manufacturing, refrigeration and packaging.

Collins said she would continue working with administration officials to secure additional relief and encourage a broader trade agreement.

The tariff dispute has become an important issue in several competitive Senate races, including contests in Maine and Michigan.

Michigan Republican Senate candidate Mike Rogers has called for an end to the trade conflict, citing the state’s close economic relationship with Canada.

Michigan’s automobile industry depends heavily on cross-border supply chains, with vehicles and components frequently moving between manufacturing facilities in both countries.

Additional tariffs can increase costs for manufacturers and suppliers, creating concerns about the potential effects on American jobs.

Trump has argued that his trade policies will ultimately strengthen domestic manufacturing by encouraging companies to invest in production facilities inside the United States.

The administration maintains that its negotiating strategy is designed to protect American industries from unfair foreign competition.

Hassett also emphasized the White House’s efforts to support American fishing industries, particularly in Maine and Alaska.

The economic adviser said administration officials had spent considerable time addressing European regulations that threatened exports of American seafood.

“Almost above everything else that we’ve done at the National Economic Council has been working on Maine and Alaska fisheries,” Hassett said.

He explained that European restrictions had created difficulties for Maine lobster exporters, prompting the administration to negotiate temporary relief.

“President Trump was able to negotiate a sort of ceasefire with the Europeans so that the Maine fishermen can continue to ship stuff to Europe,” Hassett said.

The White House has also announced a broader America First Seafood Strategy intended to strengthen domestic fishing operations and improve opportunities for American seafood producers.

Those efforts reflect the administration’s emphasis on trade policies affecting industries that depend on access to international markets.

The negotiations with Canada carry particularly significant economic consequences because the two countries maintain one of the world’s largest bilateral trading relationships.

American businesses depend on Canadian imports of energy, raw materials, manufactured components and agricultural products.

Canadian companies, meanwhile, rely heavily on access to American consumers and industrial markets.

A comprehensive agreement could reduce uncertainty for businesses that have faced changing tariff schedules and retaliatory measures.

However, the final terms remain unclear, including which tariffs would be eliminated, reduced or maintained.

The administration has not publicly released a proposed agreement, and Canadian officials have not confirmed that negotiations have reached their final stage.

For now, the White House’s latest comments represent the clearest indication in recent weeks that both governments may be moving toward a resolution.

Trump has emphasized that he is not interested in rushing negotiations simply to meet an election-related deadline.

His stated priority remains securing an agreement that he believes will deliver long-term economic benefits to American businesses and workers.

With Commerce Secretary Lutnick continuing discussions and Canadian officials signaling their willingness to negotiate, the administration is expressing renewed confidence that a major trade agreement is within reach.

Whether the two governments can resolve their remaining differences before Election Day remains uncertain, but the latest diplomatic activity suggests that negotiations have regained momentum after months of escalating tensions.