Hassett Says US and Canada ‘Very Close’ to Trade Deal as Ottawa Downplays Midterm Timeline

The United States and Canada are “very close to finally having a deal” on trade, White House economic adviser Kevin Hassett said Sunday, describing talks as “gathering steam” after months of stalemate.

Hassett told Fox News that Commerce Secretary Howard Lutnick spent the week speaking with Canadian counterparts, Investing.com reported. He said Canadian elections, including a vote on Alberta secession, had made negotiations “impossible.”

Hassett also called the U.S. economy “about the best economy we’ve ever seen,” with growth of 3% or 4%. He predicted falling energy prices would push growth higher.

Energy remains a sore spot for voters. Iran has effectively shut the Strait of Hormuz, a route for about a fifth of the world’s oil, and annual inflation ticked up to 3.7% in September from 3.4% in August.

The comments mark a more upbeat tone than Canadian officials have struck. Three sources told CBC News last week that Ottawa has informed industry groups it does not expect a deal before the Nov. 3 midterms.

Canada-U.S. Trade Minister Dominic LeBlanc confirmed that view. “We’re not going to rush into some particular circumstance and … agree to something that we don’t think is in Canada’s sovereign interest or economic interest,” he told the network.

Prime Minister Mark Carney and Trump spoke by phone on Oct. 21 about trade, but no agreement came out of the call. It is not clear whether formal negotiations have resumed since.

Tariff Relief for Maine

Hassett’s remarks follow a Friday proclamation easing some of the 50% tariffs Trump imposed on Canadian goods under Section 338 of the Tariff Act of 1930.

The order removes plywood sheets, some paper products, certain machinery and refrigeration equipment, and packing crates and boxes from the tariff list, according to a White House fact sheet. Valves, carpets and waste products take their place.

The changes take effect Oct. 30. Sen. Susan Collins (R-Maine), who faces a tight reelection race, had pushed for relief for Maine growers of blueberries, potatoes and apples, Politico reported.

The White House said the tariffs answer Canada’s “discriminatory treatment” of U.S. goods after Ottawa walked away from a near-final deal this summer and slapped retaliatory tariffs on about $20 billion in American exports.

Other Republicans in tight races have also broken with the president on Canada. Michigan Senate nominee Mike Rogers said Sunday on “Meet the Press” that he disagrees with “some of the Canadian tariffs” but could work with Trump to resolve them, CNN reported.

Rogers said it is “better to have somebody that can work to that conclusion than just go back to poke him in the eye and increase our costs all across the state.”

More pressure looms. Trump has threatened to raise tariffs on Canadian cars, trucks, auto parts and steel to 50% on Jan. 1, 2027. LeBlanc has noted the administration has not yet taken formal steps to do so.

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