Ottawa’s plan for trade negotiations with Washington appear to be running out the clock—potentially waiting for the U.S. midterm elections— drawing the ire of White House officials, according to a source familiar with the talks.

However, Prime Minister Mark Carney said Thursday he’s focused on eliminating U.S. tariffs that are hurting key sectors such as steel and aluminum.

“You know what’s an irritant? Fifty per cent tariff on steel, 50 per cent on aluminum, 25 per cent on automobiles, all the tariffs on forest products,” Carney said during an exchange with reporters in Ottawa on Thursday.

“Those are more than irritants. Those are violations of our trade deal.”

As the U.S. slowly moves toward the midterm election, a shift in Congress could increase oversight and affect the political viability of new tariffs. A Democratic majority in the House or Senate would gain subpoena power, especially in investigating the administration’s use of IEEPA.

Behind the scenes, progress appears uncertain as talks take a more strained turn, with Ottawa adopting what the source described as a hardline, all-or-nothing approach.

“We’re just saying we wanted to have technical talks,” the source said, who requested anonymity to speak freely.

Behind the scenes, the U.S. officials are increasingly frustrated with Canada’s approach, saying Canada “hasn’t played ball,” according to the source.

“The government has decided to play the clock,” the source said. “[U.S. officials] see right through the strategy.”

Provincial actions such as informal boycotts of American alcohol have been viewed “effective” but also unfriendly, the source said.

This information also comes after U.S. Trade Representative Jamieson Greer said the White House is pressing for “changes” to Canadian trade practices at a congressional committee on Wednesday.

Greer issued a warning about possible trade “enforcement action” against Canada if American alcohol does not return to Canadian liquor store shelves.

The source also said Washington believes Ottawa is overstating its openness on dairy, arguing that while some quotas have been expanded, access for U.S. producers remains too limited.

“They’re not stupid, they’re thinking maybe [Canada] doesn’t want a deal,” the source said.

That disconnect is feeding broader doubts about Canada’s intentions, the source said, as U.S. negotiators increasingly suspect Ottawa may be deliberately dragging out talks rather than pushing toward a deal.

The source added that while both countries’ leaders appear to keep things “polite” over the phone, they claim there’s “no such things.”

“It’s a mess, two ships passing in the night,” the source said.

The source further alluded that Canada may be underestimating U.S.’s aggressiveness, describing them as “sharks” who can be “nice” sometimes.

The tensions are not confined to Republican circle. The source familiar with the talks also noted frustration is building among U.S. Democrats, particularly over Canada’s electric vehicle strategy, which some in Washington feel Ottawa has failed to adequately explain or justify.

More broadly, the source said Washington is closely watching Carney’s diversification strategy.

Rather than seeing that as a neutral diversification effort, American negotiators interpret it as part of a deliberate plan to slow-walk talks, the source said.

“Now I’m hearing from the Americans they’re so pissed off with us, [they’re saying the] deal they get with us won’t be as good as Mexico’s,” the source said.

At a press conference on Thursday, Conservative Leader Pierre Poilievre said Carney has “squander leverage” on trade talks with the Americans.

When asked by a reporter whether provinces should put U.S. liquor back on the shelves to remove “trade irritants,” Poilievre pointed that the focus should be on the “2.6 million Canadian jobs.”

“I don’t think we need to spend three or four days debating whether we should drink bourbon or not, I think we should discuss whether 2.6 million Canadians are going to have their jobs,” Poilievre said.

A reporter also asked if he could leverage a deal without tariffs, to which Poilievre framed a harder-edged alternative, saying Canada should use its dominance in critical minerals, energy and aluminum as leverage to secure a tariff-free trade.

He proposed tying access to those resources to trade terms and boosting cross-border auto production, while accusing Carney of conceding to “permanent” tariffs on key industries.

“He wants to rupture jobs, I want tariff-free trade,” he said.

with files from Marco Vigliotti