California Governor Gavin Newsom says he expects trade talks between the United States and Canada to resume soon despite the recent collapse of negotiations.
The governor shared his view during an interview in which he discussed the growing trade dispute between the two countries. He said increasing pressure on U.S. President Donald Trump could force a return to the bargaining table sooner rather than later.
According to Newsom, criticism of Trump’s handling of trade issues is growing inside the Republican Party. He believes many lawmakers are concerned about the economic impact of the dispute and the possible political consequences ahead of the U.S. midterm elections.
Republicans currently hold majorities in both the Senate and the House of Representatives. However, political observers see the upcoming elections as a major test for Trump’s administration. A poor result could weaken the party’s position in Congress.
Newsom said these concerns are likely to influence future decisions on trade policy.
Trade discussions between Canada and the United States came to a halt late last week when Prime Minister Mark Carney suspended negotiations. Soon after, new U.S. tariffs targeting about $28 billion worth of Canadian goods took effect.
The developments added fresh uncertainty to an already tense relationship between the two long-time trading partners.
Businesses across several industries are closely monitoring the situation. Many companies depend on smooth trade flows between the two countries and worry that prolonged tensions could increase costs and reduce sales.
Despite the breakdown in talks, Newsom said he remains optimistic.
He stated that he expects Trump to return to negotiations within days or weeks. In his opinion, the economic and political pressure surrounding the dispute will make a long pause difficult to maintain.
Newsom also stressed that California does not support the treatment Canada has received during the trade conflict.
He said the actions of the federal government should not be viewed as representing the opinions of all Americans. He emphasized that California values its relationship with Canada and continues to support strong cooperation between the two regions.
The governor expressed sympathy for Canadians affected by the dispute. He also praised Carney’s approach to the negotiations.
Newsom said the Canadian prime minister has handled the situation effectively. He noted that showing strength is important during difficult negotiations and suggested that Carney has followed that strategy.
The trade conflict has had a noticeable effect on California’s economy, especially within the wine industry.
Canada has traditionally been one of the most important international markets for California wine. For years, wineries across the state relied on Canadian consumers and retailers as a major source of export revenue.
That market has become more difficult as trade tensions have increased.
Many Canadian provinces have removed American alcoholic products from retail shelves as part of their response to the trade dispute. California wines have been among the products affected by those measures.
The impact has been significant.
Trade data shows that wine exports from the United States to Canada declined sharply between 2024 and 2025. The reduction reached hundreds of millions of dollars, creating financial challenges for producers that depend on exports.
Newsom acknowledged that frustration exists among wine makers.
He said many producers are unhappy about losing access to an important market. Some business owners have expressed concern about declining sales and uncertain future demand.
However, Newsom argued that responsibility for the dispute should not be placed on California.
He said the state remains strongly opposed to many of Trump’s policies and continues to support close ties with Canada. According to the governor, decisions made at the federal level are responsible for the current trade tensions.
The dispute has become a growing concern for industries on both sides of the border. Manufacturing firms, farmers, retailers, and transportation companies are all watching closely for signs of progress.
Many business leaders hope renewed talks can prevent further economic disruption.
For now, the future of negotiations remains uncertain. Yet Newsom believes practical realities will eventually encourage both governments to return to discussions.
He said the economic partnership between Canada and the United States is too important to leave unresolved. As pressure builds from businesses, consumers, and political leaders, expectations are rising that negotiations will resume and efforts to ease trade tensions will move forward in the coming weeks.
