Trump is backing down on tariffs as the midterms loom, says Canada's leader, with a steel and car deal 'very close'

Canadian Prime Minister Mark Carney publicly declared that President Trump is retreating from his trade war demands as congressional midterms approach, framing the shift as a win for Ottawa. Both sides are reportedly working on a specific deal to ease steel and auto tariffs, with agreement described as "very close."

The talks focus on rolling back steel and automotive tariffs that have strained cross-border supply chains since Trump's second-term trade offensive began.

Carney's decision to go public with the "backing down" framing is a calculated political move, letting him claim domestic credit before any deal is signed.

Midterm pressure is reportedly the key driver — Trump reportedly wants a trade win on paper before voters head to the polls.