The ice may be thawing in the United States-Canada trade negotiations as the former heads into a contentious midterm season and the latter grapples with a flagging export economy.

The Trump administration on Friday added new exemptions to the list of Canadian products subject to 50 percent duties, including certain agricultural machinery as well as industrial goods like plywood, packaging and refrigeration products, while adding certain consumer goods to the docket to replace them. These exemptions will go into effect on Friday, the White House wrote in a memo.

Apparel and textiles, which were included in the Section 338 tariffs that took effect on Aug. 22, remain affected, and carpet was added to the list of tariffed goods.

On Monday, four U.S. and two Canadian sources revealed further progress in talks to Reuters. The two sides are reportedly aiming for a deal that would lower duties on Canadian cars and steel, imposed under Section 232 of the Trade Expansion Act of 1962.…