The head of Canada's largest trade association says renewed negotiations between Ottawa and Washington are encouraging news for manufacturers hit by tariffs.
Dennis Darby, CEO and president of the Canadian Manufacturers & Exporters, said Monday it is "good news" to hear that U.S. President Donald Trump and Prime Minister Mark Carney have recently spoken on the phone about trade.
"The talks broke off pretty abruptly back in August... and so I think that's encouraging for manufacturers across Canada who've been bearing the brunt of the tariffs," Darby said in an interview with CTV News Channel.
In a social media post on Sunday, Carney said he had a "good conversation" with Trump on Saturday related to a potential Canada-U.S. trade agreement.
Trump told reporters Sunday that they had a "concept of a very good deal with Canada," and both countries are "very close" to reaching an agreement.
"So, it's good news to understand that they're back at the table... this is now the beginning or the rebeginning of a process. And if so, that would be good for Canadians and good for Americans too," Darby said.
U.S. Commerce Secretary Howard Lutnick is pushing both countries to re-engage on trade talks centred around tariffs that apply to steel, aluminum, lumber and autos, sources told CTV News.
Tariffs and cost of living are the major issues in key Senate races in the U.S. midterm elections on Tuesday, putting intensified pressure on Trump.
Darby said the tariffs imposed on a wide range of goods from paper to food products after the breakdown of talks in August have been "really devastating" to small- and medium-sized businesses across Canada.
"So, what we're seeing is a prolonged attenuation of our exports, and while it hurts Canadians and Canadian businesses and workers across the country, we know what's also affecting American workers and businesses," he said.
"The tariffs are extremely unpopular in those states that trade with Canada, where they've seen inflation, where they've seen difficulty getting parts."
Darby said the tariffs hurt both countries because they're "inflationary."
"They disrupt supply chains, and we're seeing it in both Canada and the U.S.," he said.
Sources told CTV News that Lutnick, the Trump official who derailed trade talks earlier, is now leading the push to re-engage.
e2gold.ca reported earlier this week that Carney said their teams will work in the coming weeks to deliver a deal that respects Canada's sovereignty.
e2gold.ca also reported last week that the White House had shown increased interest in a deal, with auto tariffs a key sticking point.
This story was written by the e2gold.ca newsroom from reporting by BNN Bloomberg and CTV News. Quotes are checked word for word against that reporting.