White House Says U.S. and Canada Are ‘Very Close’ to Trade Deal as Tariff Negotiations Accelerate

White House economic adviser Kevin Hassett said negotiations with Canada are gaining momentum and approaching an agreement, following renewed talks and a decision by President Donald Trump to ease tariffs on certain Canadian imports.

By yourNEWS Media Newsroom

The United States and Canada are approaching a new trade agreement following months of tariff disputes, White House National Economic Council Director Kevin Hassett said Sunday, Oct. 25, as negotiations between the Trump administration and Canadian officials intensify.

During an appearance on Fox News’ “The Sunday Briefing,” Hassett said discussions had accelerated, with Commerce Secretary Howard Lutnick maintaining contact with Canadian representatives throughout the previous week.

“I think it’s very close to finally having a deal on that,” Hassett said, according to an Oct. 25 Bloomberg report.

Hassett described negotiations as having “picked up” and “gathering steam,” suggesting that Washington and Ottawa have made progress toward resolving trade disagreements that have disrupted relations between the neighboring countries.

He attributed earlier difficulties to political developments in Canada, including elections and a vote concerning Alberta’s possible separation from the country, which he said had made negotiations “impossible.”

The comments followed President Donald Trump’s decision Friday to modify tariffs on certain Canadian products, providing relief to businesses that rely on cross-border trade.

The administration agreed to remove additional 50% duties on selected Canadian imports, including plywood, bleached paper, cardboard and specialized agricultural machinery.

The changes followed lobbying by Republican Sen. Susan Collins of Maine, whose state has significant commercial ties with Canada.

According to Investing.com’s report on Hassett’s remarks, the White House adviser indicated that Lutnick’s discussions with Canadian officials were helping advance negotiations after earlier setbacks.

The renewed talks follow an extended dispute over tariffs imposed by the Trump administration on Canadian goods.

Trump introduced additional tariffs on imports from Canada after returning to the White House in January 2025, citing border security, fentanyl trafficking and trade concerns.

Canadian officials rejected several of Washington’s accusations and responded with tariffs targeting American products.

The dispute escalated in August 2026 when the Trump administration announced additional 50% tariffs on certain Canadian imports, citing disagreements involving American agricultural products, automobiles and other goods.

Canada subsequently introduced retaliatory measures affecting U.S. exports, increasing costs and uncertainty for companies operating across the border.

Businesses in both countries have expressed concern about the effect of tariffs on manufacturing, transportation, agriculture and consumer prices.

The automotive industry is particularly exposed because vehicle manufacturers operate extensive supply chains spanning the United States and Canada.

Automobile components frequently cross the border during production, making changes in import duties potentially significant for manufacturers and consumers.

The two countries also maintain extensive trade relationships involving energy, lumber, agricultural products and industrial equipment.

The current negotiations take place against the backdrop of the United States-Mexico-Canada Agreement, which replaced the North American Free Trade Agreement in July 2020.

Trump negotiated the USMCA during his first presidency but has sought additional concessions from Canada during his second term.

His administration has pressed for changes to trade arrangements involving several industries, arguing that existing policies have disadvantaged American businesses and workers.

Canadian officials have maintained that any agreement must protect their country’s economic interests while preserving stable trade relationships.

Canadian Prime Minister Mark Carney acknowledged last week that he had spoken with Trump as negotiations continued.

However, Carney has emphasized that Canada will not accept unfavorable terms merely to secure the removal of U.S. tariffs.

In August, Canadian Trade Minister Dominic LeBlanc also expressed optimism following negotiations with U.S. Trade Representative Jamieson Greer.

“We’re very close. We continue to make progress, and we’re going to stay here and do the work that’s necessary until we get to that point,” LeBlanc said following discussions in Washington, according to Global News.

Despite earlier indications that an agreement was near, negotiations continued without a final settlement, illustrating the difficulty of resolving outstanding disputes.

Hassett’s latest comments suggest renewed momentum, but neither government has announced a completed agreement or released final terms.

It remains unclear which tariffs would be eliminated, whether additional trade concessions would be required or how any new arrangement would interact with existing USMCA provisions.

Hassett also addressed the broader U.S. economy during Sunday’s interview, describing economic growth as strong despite continued inflationary pressure.

He said the economy was expanding at an annual rate of approximately 3% to 4% and suggested that declining energy prices could support additional growth.

The administration has faced concerns about elevated fuel costs, particularly amid the conflict involving Iran and disruptions affecting international oil shipments through the Strait of Hormuz.

U.S. consumer price inflation increased to 3.7% in September from 3.4% in August, adding pressure on households and businesses.

Lower trade barriers between the United States and Canada could ease some costs for industries dependent on imported materials and cross-border manufacturing, although the actual economic effects would depend on the agreement’s provisions.

The latest reporting on negotiations indicates that both sides are continuing discussions while businesses await clarity on tariffs and future trade rules.

The White House has not announced a signing date or provided a timetable for completing the agreement.

Hassett’s assessment nevertheless represents one of the administration’s clearest recent indications that negotiations are advancing following months of economic tensions.

For now, the two governments remain engaged in talks aimed at resolving outstanding disputes, with a final agreement still dependent on the terms accepted by Washington and Ottawa.