The United States and Canada are negotiating relief from US tariffs on Canadian steel and autos, according to six sources. One Canadian source says a deal is possible before the November 3 elections, while US sources say Washington wants further concessions.
The United States and Canada are working on a deal to ease US tariffs on Canadian steel and autos, two US and four Canadian sources told Reuters. The two governments are trying to repair relations that soured after trade talks broke down in August.
Talks center on Section 232 duties
The negotiations focus on tariffs imposed under Section 232 of US trade law, including up to 50% on Canadian steel and 25% on autos. Because the Commerce Department administers these tariffs, sources on both sides of the border said Commerce Secretary Howard Lutnick, rather than the US Trade Representative's office, sits at the center of the talks.
Lutnick and Canada's Dominic LeBlanc, the minister responsible for Canada-U.S. trade, have been in regular contact recently, one source said. A spokesperson for LeBlanc said Canada remains in contact with Washington. The White House, the Commerce Department and the USTR's office did not immediately respond to requests for comment.
Midterm elections loom over the talks
The talks come as President Donald Trump faces record-low approval ratings and his Republican Party risks losing control of Congress in next week's midterm elections. Republican candidates in border states have called for an end to the trade war with Canada.
One Canadian source briefed on the talks said a deal was possible before the November 3 elections. US sources said the Trump administration wanted Canada to make further concessions. A Canadian industry source said a deal could come quickly, but not necessarily a broad one.
What broke down in August
Trade talks collapsed in August over issues such as whether to cut duties on medium- and heavy-duty vehicles that are critical for Canadian factories. Trump has previously announced he would raise the tariffs on steel and auto imports from Canada to 50% from January 1, 2027.
On Friday, Trump signed an order to remove 50% tariffs on some Canadian agricultural and forestry products. At a rally on Sunday, he predicted the dispute would be resolved soon, without providing specifics.
Source: Reuters via Investing.com
Trading involves risk.
Risk Disclaimer
