Carney Sees U.S. Trade Talks Intensify as Midterms Near
WHO:
CNBC - Jennifer Thomas, senior vice president of corporate affairs at American Honda Motor Co., said the company is “cautiously optimistic” that the United States and Canada will avoid higher auto tariffs.
ABC News Business - Canadian Prime Minister Mark Carney said U.S.-Canada trade talks had intensified slightly, while Canada remained firm on its demands.
The Globe and Mail - Carney said any progress in the talks was because Washington was moving closer to Ottawa’s position.
The Globe and Mail - U.S. President Donald Trump was seeking a breakthrough ahead of midterm elections and wanted to show voters he was lowering the cost of living, according to six sources familiar with negotiations.
The Globe and Mail - Canadian Chamber of Commerce CEO Candace Laing said she was briefed by Canada’s trade team; she serves on Ottawa’s advisory committee on Canada-U.S. economic relations.
The Globe and Mail - Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, said the President had shown flexibility for strategic midterm interests.
The Globe and Mail - Trade Minister Dominic LeBlanc’s office said Canada and the United States remained in “constructive dialogue.”
The Globe and Mail - Commerce Secretary Howard Lutnick was leading the U.S. side of talks, with the Office of the United States Trade Representative also involved, according to sources.
WHAT:
CNBC - President Trump threatened to raise tariffs on Canadian vehicles and parts from 25% to 50% if the United States and Canada do not reach a deal by Jan. 1.
CNBC - Thomas warned that 50% tariffs would be “catastrophic for the entire industry” and said a trilateral agreement including Mexico was needed to keep U.S. automakers competitive.
CNBC - Honda said more than 60% of the vehicles it sells in the United States are made domestically; Honda is the second-largest vehicle producer in Canada, behind Toyota.
CNBC - U.S. Trade Representative Jamieson Greer announced that the United States would not automatically extend the USMCA, placing it in an annual review process instead of a 16-year extension.
Alternet - The United States has four operating aluminum smelters, down from 24 twenty-six years earlier; Canada supplies about 70 percent of U.S. aluminum imports.
Alternet - U.S. aluminum premiums have reached record levels amid the 50 percent tariff on Canadian aluminum, raising costs for businesses that use the metal in cars, homes, aircraft, and data centers.
Alternet - Rio Tinto is investing $1.5 billion to modernize operations in Quebec’s Saguenay region; a proposed $4 billion aluminum smelter in Oklahoma faces opposition over pollution, foreign ownership, and the public funding needed to build it.
Alternet - Canadian aluminum shipments to Europe rose 77 percent year over year through August.
The Globe and Mail - The talks concerned an unfinished trade deal that could provide Canada relief from U.S. tariffs, including tariffs on autos, steel, and aluminum. Carney did not say how close the sides were to an agreement.
The Globe and Mail - Carney said the chances of a deal would improve if the United States backed away from Ottawa’s “red lines.” He said Canada was ready to sign an agreement serving Canadians’ interests but would not accept the offer made in August.
The Globe and Mail - Carney said he did not know whether the U.S. government’s signature on a new deal would be “in pen,” after previously saying its “signature was written in pencil.”
The Globe and Mail - Two U.S. industry sources said the sides had found an acceptable “landing zone” for auto tariffs and agreed on some digital-trade issues; one said the U.S. wanted a Mexico auto deal mirroring Canada’s.
The Globe and Mail - Canadian officials said no documents had been exchanged and no representatives sent to Washington; another Canadian source said officials had been in Washington, while talks had continued informally since negotiations collapsed.
The Globe and Mail - Trump exempted some Canadian goods from 50-per-cent tariffs, including paperboard cartons, plastic crates and bags, refrigeration equipment, and agricultural sorting machinery. The White House said other Canadian imports would receive levies to maintain the same total amount of taxed goods.
The Globe and Mail - Trump said Canada had been “ripping off” the United States, and that the dispute would be settled “pretty soon”; he said Canada was “willing to give us anything at this moment.”
The Globe and Mail - Sources said a deal could happen quickly if political will existed, but another source doubted serious negotiations were underway and said meaningful auto- and metal-tariff relief was unlikely before the election.
WHERE:
Alternet - Quebec’s hydropower resources give its aluminum smelters access to inexpensive electricity.
The Globe and Mail - The negotiations were between Ottawa and Washington; the tariffs affect Canadian goods entering the United States.
The Globe and Mail - Trump made his remarks at a rally in Port Huron, Michigan.
WHEN:
CNBC - The threatened increase in tariffs on Canadian vehicles and parts would take effect Jan. 1 if no deal is reached.
WHY:
CNBC - Honda and other U.S. auto industry trade associations support a trilateral deal because vehicle production involves parts regularly crossing North American borders.
Alternet - Aluminum production requires large amounts of electricity, and Quebec’s access to hydropower gives its smelters a cost advantage over U.S. competitors.
The Globe and Mail - Canada abandoned the earlier talks because the U.S. would not extend relief to medium- and heavy-duty trucks, pursued changes concerning French-language streaming content, and proposed language Ottawa thought could limit Canada’s ability to make trade deals.
The Globe and Mail - Carney said the U.S. offer asked too much and offered too little, and could curtail Canadian sovereignty or damage major industries.
The Globe and Mail - The tariff dispute put pressure on industries including General Motors and Ford plants in Ontario.
The Globe and Mail - Volpe said exemptions benefiting Senator Susan Collins’s re-election campaign suggested White House flexibility during the midterm period.
(UPDATED October 27, 2026 19:03 UTC)
President Trump threatened to raise tariffs on Canadian vehicles and parts from 25% to 50% if the United States and Canada fail to reach a deal by Jan. 1, while Honda warned that the increase would be catastrophic for the auto industry. Canadian Prime Minister Mark Carney said trade talks had intensified slightly but Canada would not accept the U.S. offer made in August, and he said progress depended on Washington moving closer to Ottawa’s position.
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(UPDATED October 27, 2026 16:10 UTC)
Canadian Prime Minister Mark Carney says trade talks with the United States have intensified slightly, but Canada remains firm and will not accept Washington’s earlier offer, which he says asked too much and offered too little. The negotiations could ease tariffs on cars, steel and aluminum, though no documents have been exchanged, and officials have not said how close they are to a deal; some U.S. industry sources say they have found common ground on auto tariffs and digital trade. The stakes are high for aluminum users, as tariffs on Canadian metal have driven U.S. premiums to record levels, while Canada supplies about 70 percent of U.S. aluminum imports.
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(UPDATED October 27, 2026 13:26 UTC)
President Trump and Prime Minister Mark Carney are pursuing renewed U.S.-Canada trade talks, with Carney saying discussions have intensified slightly but Canada remains firm on its demands. The unfinished deal could ease U.S. tariffs on Canadian autos, steel and aluminum, and industry sources say the sides have found common ground on some auto tariffs and digital-trade issues, though no documents have been exchanged and Carney says an agreement must protect Canadian interests. Trump has exempted some Canadian goods from tariffs and says the dispute will be settled soon, while Carney says progress depends on Washington moving closer to Ottawa’s position and backing away from its red lines.