Trump Says Canada Is Treating the U.S. ‘Extremely Nicely’ After His Tariffs, Despite Stalled Trade Negotiations

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U.S. President Donald Trump is describing Canada as unusually accommodating after months of escalating tariff pressure, even as officials in Ottawa acknowledge that negotiations have produced little meaningful progress.

Speaking at a campaign rally in South Carolina on October 29, 2026, Trump claimed his tariffs had improved Canada’s treatment of the United States, suggesting that economic pressure was producing the results he wanted.

His comments presented a surprisingly positive assessment of a relationship strained by steep tariffs, retaliatory measures and disagreements over trade concessions. Prime Minister Mark Carney’s government, meanwhile, continues to insist that any agreement must protect Canadian workers and businesses.

With American midterm elections approaching and major industries facing uncertainty, the difference between Trump’s optimistic language and the reality of ongoing trade restrictions has become increasingly important.

Trump Claims His Tariffs Have Changed Canada’s Behaviour

Trump’s latest comments came during an October 29 campaign rally in Rock Hill, South Carolina, where he was supporting Republican Senate candidate Darline Graham. Addressing supporters, the president argued that his administration’s tariffs had forced Canada to reconsider its relationship with Washington. He claimed Canada had taken advantage of the United States for years and was now responding differently because of his trade policies. Trump described Canada’s recent behaviour as “extremely nicely,” presenting the change as evidence that his administration’s aggressive negotiating strategy was working.

The remarks were notable because they represented a friendlier assessment of Canada’s conduct than some of Trump’s earlier statements. However, the president did not announce a new trade agreement, identify specific Canadian concessions or outline additional tariff reductions during the rally. His comments instead reinforced a central argument of his economic policy: that imposing substantial costs on foreign exporters can encourage governments and companies to negotiate on American terms. Whether that interpretation reflects meaningful progress remains uncertain, especially given the Canadian government’s more cautious description of recent discussions.

Canadian Officials Say Negotiations Have Made Limited Progress

Despite Trump’s positive assessment, Canadian officials have offered a considerably more restrained account of the negotiations. On October 28, Reuters reported that a Canadian government official familiar with the discussions acknowledged that talks were continuing but had achieved limited progress. The negotiations have focused partly on reducing American tariffs affecting Canadian steel and automobiles. The official’s assessment suggested that communication between the governments had improved without resolving the central disagreements that have prevented a broader settlement.

Prime Minister Mark Carney reinforced that uncertainty when reporters questioned him about the possibility of reaching an agreement before the November 3 American midterm elections. Carney said Canada remained interested in an arrangement benefiting both countries but was not yet in a position to finalize one. American officials, meanwhile, confirmed that discussions were continuing between senior representatives, including U.S. Commerce Secretary Howard Lutnick and Canadian Trade Minister Dominic LeBlanc. The contrast is significant: Washington has emphasized the possibility of a breakthrough, while Ottawa has focused on whether the terms would deliver sufficient economic benefits. For Canadian businesses, continued communication is encouraging, but it does not provide the certainty of an actual agreement.

The August Breakdown Still Shapes the Trade Dispute

The deterioration in Canada-U.S. trade relations accelerated in August 2026, when Carney suspended formal negotiations after his government rejected changes to the proposed agreement. In an August 21 statement, the prime minister described Washington’s last-minute demands as economically unacceptable and damaging to the reliability of a potential deal. Ottawa maintained that its negotiators had worked in good faith but could not accept terms that undermined Canadian interests. The breakdown demonstrated how far apart the governments remained despite their extensive commercial relationship and repeated diplomatic exchanges.

The dispute quickly moved beyond negotiations into additional economic retaliation. Washington imposed a 50% tariff on a specified range of Canadian products, affecting approximately $27.6 billion worth of goods according to Canadian government figures. Ottawa subsequently introduced matching countermeasures on an equivalent value of American imports, effective September 8. The Canadian measures covered industries including steel, aluminum, dairy, agricultural equipment, appliances and electronics. These decisions increased uncertainty for importers, exporters and manufacturers already adjusting to earlier restrictions. They also created practical obstacles to rebuilding trust, because any eventual agreement would need to address not only the original disagreements but also the additional tariffs introduced after negotiations collapsed.

Washington Is Still Changing Tariffs Despite Trump’s Positive Remarks

The tariff landscape remained unsettled even as Trump spoke favourably about Canada. A presidential proclamation signed on October 23 took effect on October 30, removing the additional 50% duty from some Canadian product classifications while placing other categories under the same rate. The changes followed earlier adjustments to Washington’s tariff schedule and demonstrated how quickly commercial rules affecting importers can change. Crucially, the announcement did not represent a blanket withdrawal of the tariffs imposed after the August breakdown. Companies still needed to determine precisely which goods were covered under the latest classifications.

The distinction matters at the border. A small Canadian manufacturer might sell several products that appear similar in a catalogue but fall under different customs codes. One shipment could receive relief while another becomes more expensive. The White House proclamation also specified that the modified duties may apply in addition to certain national-security tariffs under Section 232. That leaves companies managing multiple requirements involving product classification, documentation and import costs. Trump’s favourable assessment of Canada does little to resolve those practical difficulties without corresponding changes to American trade policy.

Steel and Automotive Manufacturers Face the Greatest Uncertainty

The sectoral tariffs at the centre of current negotiations are especially consequential for factories built around the North American market. Reuters reported that negotiators were discussing relief from American Section 232 duties of up to 50% on Canadian steel and 25% on automobiles. Those measures are separate from the broader product-specific tariffs imposed during the August dispute. In automotive manufacturing, vehicles assembled in Canada often contain components purchased and processed across the border. Tariff exposure can therefore affect prices and production decisions long before a finished vehicle reaches a dealership.

Algoma Steel’s October 28 earnings release provided a concrete example of the pressure. The Sault Ste. Marie company reported that U.S.-bound shipments represented just 24% of its third-quarter steel shipments, down from 50% a year earlier. It recorded C$18.1 million in direct tariff costs despite deliberately reducing its American export volumes. The steelmaker also identified its transition to electric-arc furnaces and a power outage as factors affecting production, meaning its weaker shipment figures cannot be attributed entirely to tariffs. Nevertheless, its growing focus on Canadian customers illustrates the difficult adjustments businesses face when established export routes become substantially more expensive.

Canada’s Economic Figures Reveal an Uneven Impact

Broader economic figures paint a mixed picture rather than a straightforward collapse. Statistics Canada reported on October 30 that real gross domestic product was essentially unchanged in August, marking a second consecutive month without growth. Its preliminary estimate pointed to a 0.1% decline in September, although the agency emphasized that the figure could change when complete data became available. Motor vehicle and parts manufacturing contracted 5.8% in August, largely reflecting a prolonged summer shutdown at a major assembly plant. These developments highlight industrial vulnerability without establishing that tariffs caused every decline.

Trade flows were not uniformly weak either. Canadian merchandise exports to the United States rose 8.1% in August, according to Statistics Canada’s October 6 release. Separately, a fall economic report found that exports to countries other than the United States during the first half of 2026 were 19.4% higher than in the second half of 2025. Currency movements, energy prices and shipment timing can all influence those totals. For workers and business owners, the concern extends beyond any single monthly figure to the uncertainty surrounding future orders, investment and employment. That uncertainty persists until trading conditions become more predictable.

Trump’s $90-Billion Trade Claim Does Not Match Official Figures

During the same Rock Hill speech, Trump asserted that the United States had lost $90 billion trading with Canada in the previous year, portraying that figure as a subsidy to its northern neighbour. Official American trade statistics tell a different story. According to the Office of the United States Trade Representative, American imports of Canadian goods exceeded exports by US$48.3 billion in 2025. At the same time, the United States recorded a US$27.7-billion surplus in services trade with Canada. Those categories matter because focusing exclusively on physical goods overlooks substantial American earnings from services.

A trade deficit also does not automatically mean a government is providing financial assistance to another country. It measures the difference between imports and exports within a specified category, rather than a direct transfer of taxpayer funds. The same U.S. government figures valued two-way trade in goods and services at approximately US$872.3 billion in 2025. Trump’s argument reflects his administration’s broader concerns about trade imbalances, but the published figures do not substantiate treating the stated $90 billion as an established annual American loss. That distinction matters when trade statistics are used to justify tariffs affecting manufacturers, consumers and businesses throughout North America.

Canada Is Strengthening European Partnerships as an Alternative Strategy

While Ottawa continues negotiating with Washington, it is simultaneously trying to reduce the risks associated with relying heavily on one export market. At the Canada-European Union summit in Montréal on October 30, Carney and European leaders launched an Alliance for the Future covering trade, energy, critical minerals, digital technologies and security. Canadian government figures put bilateral trade with the European Union in goods and services at approximately C$178 billion in 2025. The governments also announced the conclusion of negotiations on a new digital trade agreement, potentially making cross-border online business easier for Canadian and European companies.

Carney went further by proposing a relationship that could make Canada the European Union’s first associate member, short of full membership. However, that designation has not been formally agreed upon. The summit’s joint statement instead referred to developing an increasingly close association, while Reuters reported resistance to the proposed label among some European governments. For Canadian exporters considering new markets, the distinction between announced cooperation and unfinished negotiations remains important. Stronger European partnerships could eventually offer greater opportunities, but they cannot immediately replace the scale, geographic proximity and integrated supply chains of the American market. Diversification represents a longer-term strategy for reducing economic vulnerability rather than an immediate solution to Trump’s tariffs.

The Midterm Elections and CUSMA Review Leave Major Decisions Ahead

Political timing could determine whether recent discussions produce meaningful relief. Negotiations over steel and automotive tariffs intensified ahead of the November 3 American midterm elections, with Reuters reporting that some people familiar with the talks believed a narrower agreement might be possible before voting day. Other participants remained cautious, while Canadian officials emphasized that significant differences persisted. Even if the two governments reach an agreement covering specific industries, that would not necessarily settle the wider disputes involving tariff classifications, market access and the future structure of North American trade. For affected manufacturers, the crucial questions concern which tariffs will actually change, when the changes will take effect and whether the resulting rules will remain stable.

The broader Canada-United States-Mexico Agreement presents another unresolved challenge. Washington declined to renew the agreement in its existing form during the July 1, 2026, joint review, although CUSMA remains legally in force and its current term runs until 2036. Annual reviews will continue unless the countries agree to extend it, and American trade officials are already gathering public input for the 2027 review. Trump’s more encouraging language may indicate greater political flexibility, but it does not eliminate these underlying disagreements. A lasting improvement in Canada-U.S. relations will ultimately depend on concrete tariff reductions, enforceable commitments and a more predictable trading environment for businesses and workers on both sides of the border.

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