White House economic adviser Kevin Hassett said Sunday that the United States and Canada were approaching a trade agreement, signaling renewed momentum in President Donald Trump’s negotiations with Ottawa after months of tariff disputes.
Hassett Sees Breakthrough After Months Of Tensions
“I think it’s very close to finally having a deal on that,” Hassett told Fox News’ The Sunday Briefing, adding that negotiations were “gathering steam.” He said Commerce Secretary Howard Lutnick had been speaking with Canadian counterparts throughout the week.
Hassett blamed Canadian elections, including an Alberta secession vote, for making earlier negotiations “impossible.” His comments follow Trump’s previous prediction that Canada would seek a trade agreement.
The countries’ August negotiations collapsed, triggering 50% tariffs on approximately $20 billion in Canadian imports. However, Trump recently exempted certain Canadian products, including plywood and agricultural machinery, after Sen. Susan Collins’ (R-Maine) intervention.
The Office of the U.S. Trade Representative and the White House did not immediately respond to Benzinga’s request for clarifications on Hassett’s comments to Fox News.
Canada Maintains Caution Despite Renewed Negotiations
Canadian Prime Minister Mark Carney recently criticized Trump’s tariffs for increasing costs and damaging cross-border industries, while signaling willingness to resume negotiations.
The dispute previously prompted U.S. Trade Representative Jamieson Greer to defend Washington’s proposed concessions. No finalized agreement has emerged.
Hassett Praises Economy Ahead Of Midterms
With Republicans making their final pitches before the November 3 midterms, Hassett called the U.S. economy “about the best economy we’ve ever seen,” citing growth of 3% to 4%.
He predicted stronger growth if energy prices declined, repeating Trump’s forecast that prices would “drop like a rock.”
However, inflation remains a challenge. The Bureau of Labor Statistics reported September consumer prices rose 3.7% annually, up from 3.4% in August, while gasoline prices jumped 9.1% during the month.
Energy inflation also reached 20.4% annually, complicating the administration’s affordability message as the Iran conflict continues to disrupt global oil supplies.
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