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Canadian Prime Minister Mark Carney stated on Tuesday, November 10, 2026, that his government will continue to negotiate trade matters primarily with U.S. President Donald Trump’s administration. Despite Democratic gains in the U.S. midterm elections on Tuesday, November 3, 2026, Carney noted that the executive branch maintains primary authority over trade agreements for the next two to three years. These comments followed a weekend phone call between Carney and Trump.
The trade relationship between the two nations has been strained since August 2026, when Canada suspended negotiations following U.S. demands that Carney described as unacceptable regarding Canadian sovereignty and cultural protections. In response, President Trump imposed 50% tariffs on billions of dollars worth of Canadian goods, which led to retaliatory measures from the Canadian government. Carney stated that recent progress has been made, noting that Washington has moved away from certain demands concerning language protections and trade autonomy.
The recent U.S. election results have introduced a new dynamic to the negotiations. While the Trump administration remains the principal negotiator, Democrats in Congress, including Sen. Ron Wyden (D-OR), have pledged to prioritize the repeal of these tariffs. Carney acknowledged these efforts on Friday, November 6, 2026, but he cautioned that Canada must still deal with the American executive branch to reach a formal agreement. He specifically addressed plans by officials in Quebec to reach out directly to U.S. governors and senators, emphasizing that the Canadian federal government should remain the sole negotiator for the country.
The situation also impacts industrial workers in both countries. In Ontario, workers at the Brampton plant are seeing their facility sold to Roshel, an armored vehicle maker, after Stellantis moved Jeep Compass production to Illinois. This shift occurred as the Trump administration pressured automakers to relocate manufacturing to the United States. For Canadian workers, this represents a loss of planned automotive manufacturing jobs, while for U.S. workers in Illinois, it results in new production lines. The continuation of tariffs or the reaching of a new deal will dictate whether other manufacturers follow suit or if cross-border supply chains stabilize.
Furthermore, the outcome of these negotiations will set a precedent for how middle powers like Canada manage trade disputes with larger economies that use tariffs as leverage. Carney previously cautioned against the weaponization of trade at the World Economic Forum. The next steps involve high-level international meetings, including the APEC summit in Shenzhen next week, where Carney is scheduled to meet Chinese President Xi Jinping. While a specific deadline for a U.S.-Canada trade deal has not been set, the ongoing talks will determine if Canada accepts a partial reduction in tariffs or continues to seek a full return to free trade as U.S. congressional leaders begin their own legislative challenges to the current trade policy.