Diplomatic momentum around the Canada–US trade negotiations has slowed dramatically, as US Ambassador David Cohen said he sees “no realistic path” to reaching a tariff resolution before American Thanksgiving. His remarks reflect the growing strain in bilateral economic relations and cast doubt on near-term relief for Canadian exporters.
Cohen, speaking in Ottawa, emphasized that while dialogue between Washington and Ottawa remains active, fundamental disagreements persist, especially around auto parts, aluminum, and wood product tariffs imposed earlier this year under US national security provisions. The US administration continues to frame these measures as part of its “strategic economic resilience” agenda, a phrase that Canadian officials see as thinly veiled protectionism.
According to policy insiders, both sides are seeking a pathway to partial exemptions or time-limited relief, but political constraints in Washington ahead of the 2026 mid-term campaign season are limiting flexibility. For Canada, these delays pose a challenge to exporters already struggling with higher logistics costs, tighter margins, and currency volatility.
Former Canadian trade officials note that such a delay could push negotiations into early 2026, leaving Canadian sectors like manufacturing, forestry, and energy exposed. Even if a deal emerges later, the diplomatic tone suggests that tariff relief will be incremental, not comprehensive.
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Written for the Canadian Chamber of Commerce in Hungary News Section as part of our ongoing coverage of developments affecting Canadian trade, economy and international partnerships, October 2025