Canada signals it can delay trade deal with U.S. until new president

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Canada may delay US trade deal

Highlights

Canadian Prime Minister Carney signals willingness to delay trade agreement with the U.S. until after the White House transition if current terms remain unacceptable.
Trade talks have stalled amid reciprocal tariffs since August, with tensions escalating ahead of U.S. midterm elections in key border states reliant on Canadian trade.
Canada deepens cooperation with Europe on technology and AI, investing in Cohere after its merger with Aleph Alpha, and pursues less dependence on foreign technology platforms.

Trade talks harden after tariff dispute

As reported by Business Insider, citing POLITICO, Carney says his government is willing to wait beyond the current White House if negotiations with the Trump administration do not produce terms Canada can accept. He says he will not sign an agreement merely for the sake of reaching one, and argues U.S. families and businesses would also bear costs from a prolonged impasse.

Negotiations between the two countries have moved unevenly since Canada stepped away from talks in August, and both sides have imposed new tariffs this fall. The standoff is gaining political weight in the U.S. ahead of midterm elections on Tuesday, particularly in border states such as Michigan and Maine, where trade with Canada has outsized economic importance.

Carney also says Canadians are weary of what he describes as diplomatic provocations from the United States. Tensions have risen further after the U.S. embassy in Ottawa circulated claims of possible Canadian interference in U.S. elections, although Ambassador Pete Hoekstra later says there has been no definitive determination of improper meddling by Canadian political figures.

Europe ties and AI strategy shape broader response

At the close of the 21st EU-Canada summit in Montreal, Carney pairs the trade dispute with a wider effort to deepen cooperation with Europe on technology, commerce, research and security. He downplays resistance inside the EU, especially from Germany, to a proposal that would give Canada an "associate member" status, saying the relationship will remain exceptionally close regardless of the final label.

Part of that strategy is reducing reliance on foreign technology platforms. Carney points to vulnerabilities in satellite connectivity and argues that pooling Canadian and European space assets could strengthen autonomy, while his government also increases investment in artificial intelligence, including backing for Canadian AI company Cohere after its merger earlier this year with Germany's Aleph Alpha.

On AI policy, Carney favors safeguards on privacy and safety rather than broad restraints on frontier development, and says powerful industries need guardrails rather than full self-regulation. He also criticizes inconsistent U.S. support for Ukraine as unhelpful, linking trade friction with broader concerns about Washington's stance on security and transatlantic cooperation.

Our earlier coverage of the WTO’s outlook examined how wars and tariffs are driving lasting shifts in global trade, as companies redesign supply chains and shipping routes to reduce vulnerability to future shocks. It highlighted forecasts for a sharp contraction in Middle East trade in 2024 and noted that the tariff wave tied to Trump-era policies is reinforcing a move toward costlier but more resilient alternatives. The report also pointed out that demand for AI-related goods is helping support global trade growth projections despite ongoing disruptions.

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