Hassett says U.S.-Canada trade deal is ‘very close’

White House economic adviser Kevin Hassett said Sunday that Canada and the United States are “very close” to a trade deal, two days after the White House changed its 50 per cent tariffs on a list of Canadian goods.

Updated Oct. 25, 2026, 7 p.m. ET.

Hassett, director of the National Economic Council, made the comments on Fox News, CTV News reported, and Bloomberg also reported. He said talks had been “gathering steam.” No deal text or signing date has been released by either government.

The remarks come nine days before the Nov. 3 U.S. midterm elections and five days before the tariff changes take effect. The White House said in an Oct. 23 fact sheet that the additions and removals under Section 338 of the Tariff Act of 1930 take effect Oct. 30, 2026.

Hassett said Commerce Secretary Howard Lutnick had been speaking with Canadian counterparts during the past week. “The negotiations have picked up. They’re gathering steam,” he said, according to CTV.

Asked why President Donald Trump’s tariff policy had not yet produced a deal, Hassett blamed Canadian politics. He cited the “Canadian election that just happened, including Alberta separating,” CTV reported. He said it had made it “essentially impossible to negotiate with the Canadians.” CTV presented that as Hassett’s claim and did not verify it.

Trump told reporters Friday that a deal was close and that his team has “all the cards,” CTV reported. Prime Minister Mark Carney has said Canada “could sign it this afternoon if the U.S. were there,” as we reported when the changes were announced.

The tariff changes remove some goods from the 50 per cent list and add others. CTV reported that seaweed, packing boxes and some plywood sheets were exempted, while cocoa powder, vinyl flooring and shampoos were among the products added. Republican Sen. Susan Collins of Maine, who is seeking re-election, took credit for the exemptions that affect farm products in her state. She called Canada America’s “neighbour, ally, and largest trading partner.”

Jean-François Dufresne, chief executive of hardwood flooring maker Preverco, said Saturday: “Overnight, we’re losing 25 per cent of our business.” He wrote to Finance Minister François-Philippe Champagne asking for a meeting, CTV reported. Trade Minister Dominic LeBlanc’s office said Canada “stands ready to work constructively and in good faith towards a more mutually beneficial trading relationship.”

The tariffs are also facing a court challenge. A U.S. importer has sued over the 50 per cent levies. Separately, Hassett’s reference to Alberta follows a week of debate over the province’s separation petition.

For Canadians, the practical stakes are in the products affected. Exporters of flooring, cocoa products and personal-care goods face the higher costs from Oct. 30, while U.S. importers of the exempted goods would pay less. Existing U.S. tariffs on metals, lumber and autos remain in place, CTV reported.

No new round of talks has been announced. Hassett gave no timeline, and Carney has said Canada would wait months or longer for a proper agreement.

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Via CTV News and Bloomberg.