White House says the US and Canada are very close to a trade deal

Hassett spoke on Fox News on Sunday, 25 October. "I think it's very close to finally having a deal on that," he said. He added that Commerce Secretary Howard Lutnick had been talking to his Canadian counterparts all week.

Asked why there is no deal yet, Hassett pointed to elections in Canada, including a vote in Alberta about separation. He said that had made it "essentially impossible" to negotiate with the Canadians. On Friday Trump himself told reporters he felt a deal was close.

On that same day, 23 October, the White House changed the list of Canadian goods under the 50% tariff. Some goods that matter to farmers in Maine came off the list and others were added. The changes take effect on 30 October. Many Canadian goods already face US tariffs, including metals, lumber and cars.

Canada is answering carefully. The office of Dominic LeBlanc, the minister for Canada-US trade, said the government will assess the latest measures and that Canada stands ready to work "constructively and in good faith" towards a more mutually beneficial relationship.

Keep the gap in mind between "very close" and a deal. Nobody has named a date, terms or which tariffs would go.

Confirmed facts

• Kevin Hassett, director of the White House National Economic Council, said on Fox News on 25 October that the US and Canada are very close to a trade deal.^[1][2][3]
• Hassett said Commerce Secretary Howard Lutnick spoke with Canadian counterparts all week and that talks are gathering steam.^[1][2][3]
• Hassett blamed the delay on elections in Canada, including a vote in Alberta about separation.^[2][3]
• On Friday Trump told reporters he felt a deal was close.^[3]
• On 23 October the White House changed the list of Canadian goods under tariff, with the changes taking effect on 30 October.^[4][3]
• Minister Dominic LeBlanc's office said Canada will assess the new measures and stands ready to work constructively and in good faith.^[3]

Implications

• ConfirmedThere is no signed deal and no published terms yet, so the 50% tariffs remain in place.
• Our readingIf a deal is announced, the Canadian dollar and shares of cross-border firms could move sharply.
• Our readingBefore the 3 November congressional elections the White House gains from showing progress, so upbeat words do not always mean a quick signature.

Still unknown

• When a deal could be signed and which tariffs it would remove.
• Whether the Canadian government confirms that the two sides are close.

Who it affects

United States, Canada. Those who trade the Canadian dollar, commodities or shares of companies doing business across the US-Canada border

Sources

1. Bloomberg Tax: Hassett Says US-Canada Trade Talks Are 'Very Close' to a Deal October 25, 2026 · media
2. Investing.com: U.S, Canada "very close" to trade deal, White House's Hassett says October 25, 2026 · media
3. CTV News: Top Trump adviser says a deal with Canada is 'very close' October 25, 2026 · media
4. The White House: Fact Sheet: President Donald J. Trump Further Modifies Canadian Products Subject to Tariffs Under Section 338 October 23, 2026 · official