White House economic adviser Kevin Hassett said Sunday that the United States and Canada are inching toward a trade agreement, a sign of fresh momentum in President Donald Trump's negotiations with Ottawa after months of tariff fights.

Hassett Sees a Breakthrough After Months of Tension

"I think it's very close to finally having a deal on that," Hassett told Fox News' The Sunday Briefing, adding that negotiations were "gathering steam." He said Commerce Secretary Howard Lutnick had been speaking with Canadian counterparts throughout the week.

Hassett pinned earlier failures on Canadian elections, including an Alberta secession vote, which he said made negotiations "impossible." His comments follow Trump's earlier prediction that Canada would come looking for a trade agreement.

The two countries' August negotiations collapsed, triggering 50% tariffs on approximately $20 billion in Canadian imports. Trump has since exempted certain Canadian products, including plywood and agricultural machinery, after an intervention by Sen. Susan Collins (R-Maine).

The Office of the U.S. Trade Representative and the White House did not immediately respond to MarketDash's request for clarification on Hassett's comments to Fox News.

Canada Stays Cautious Despite Renewed Talks

Canadian Prime Minister Mark Carney recently criticized Trump's tariffs for driving up costs and hurting cross-border industries, while signaling a willingness to return to the table.

The dispute previously led U.S. Trade Representative Jamieson Greer to defend Washington's proposed concessions. No finalized agreement has emerged.

Hassett Touts the Economy Ahead of the Midterms

With Republicans making their final pitches before the November 3 midterms, Hassett called the U.S. economy "about the best economy we've ever seen," citing growth of 3% to 4%.

He predicted even stronger growth if energy prices fall, repeating Trump's forecast that prices would "drop like a rock."

Inflation, though, remains a problem. The Bureau of Labor Statistics reported September consumer prices rose 3.7% annually, up from 3.4% in August, while gasoline prices jumped 9.1% during the month.

Energy inflation also reached 20.4% annually, complicating the administration's affordability message as the Iran conflict continues to disrupt global oil supplies.