US, Canada working on deal to ease steel, auto tariffs, sources say
SPY•The United States and Canada are negotiating potential relief from US tariffs on Canadian steel and autos, according to two US and four Canadian sources. A deal could come before the November 3 elections, though US sources said the administration wants further concessions from Canada.
1. Tariff relief talks
The United States and Canada are working on a deal to ease tariffs on Canadian steel and autos as the governments try to repair relations after trade talks broke down in August. Negotiations focus on Section 232 duties, including tariffs of up to 50% on Canadian steel and 25% on autos.
2. Timing and sticking points
One Canadian source briefed on the talks said a deal was possible before the November 3 elections, while US sources said the Trump administration wanted further concessions from Canada. A Canadian industry source said any deal could come quickly but might be narrow. Trump has said steel and auto tariffs on Canadian imports will rise to 50% from January 1, 2027.
3. Officials in contact
Commerce Secretary Howard Lutnick and Canada's trade minister Dominic LeBlanc have been in regular contact recently, one source said. Canadian Prime Minister Mark Carney said talks had seen “a slight intensification” and that any progress reflected the United States coming closer to Canada's position.
