US, Canada negotiate deal to ease steel and auto tariffs

The United States and Canada are negotiating a possible deal to ease US tariffs on Canadian steel and automobiles, as the two countries seek to repair relations strained by the collapse of trade talks in August, according to Reuters.

The United States and Canada are negotiating a possible deal to ease US tariffs on Canadian steel and automobiles, as the two countries seek to repair relations strained by the collapse of trade talks in August, according to Reuters.

The discussions concern tariffs imposed under Section 232 of US trade law, including duties of up to 50 percent on Canadian steel and 25 percent on automobiles, six sources familiar with the talks told Reuters.

An agreement could be reached before the November 3 US midterm elections, one Canadian source said. However, US sources said the administration of President Donald Trump was seeking further concessions from Canada.

The talks remain uncertain, and any agreement could be limited in scope rather than resolve the wider trade dispute.

Commerce Secretary Howard Lutnick is playing a central role in the negotiations because the Section 232 tariffs fall under the US Commerce Department’s authority. Lutnick and Dominic LeBlanc, Canada’s minister responsible for Canada-US trade, have been in regular contact, according to sources on both sides of the border.

The office of LeBlanc said Canada remained in contact with Washington.

“Canada remains in constructive dialogue with our U.S. counterparts on a range of priorities,” a spokesperson for LeBlanc said in a statement. “We stand ready to work constructively and in good faith towards a more mutually beneficial trading relationship that respects Canada’s interests.”

Canadian Prime Minister Mark Carney said the recent progress reflected a shift in Washington’s position, while Ottawa had maintained its stance.

“To the extent any progress has been made, it’s because the U.S. is coming closer to our position,” Carney told reporters, without giving further details.

A Canadian industry source said an agreement could be reached quickly but might cover only a narrow range of issues.

“If it happens, it’ll happen fast. But my sense is it’ll be a narrowed deal, if it even happens,” the source said.

Trade negotiations between the two countries broke down in August over several issues, including whether to reduce duties on medium- and heavy-duty vehicles that are important to Canadian factories.

Trump said at a political rally on Sunday that the dispute would be resolved “soon”, but gave no details. He has also threatened to raise tariffs on Canadian steel and auto imports to 50 percent from January 1, 2027.