US, Canada working on deal to ease steel, auto tariffs, sources say
SPY•The United States and Canada are discussing relief from tariffs of up to 50% on Canadian steel and 25% on autos. A deal could come before the November 3 midterm elections, Canadian sources said, while US sources said Washington wants further concessions from Canada.
1. Tariff relief talks
The United States and Canada are working on a deal to ease US tariffs on Canadian steel and autos, six sources said, as the two 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. Possible timing
A Canadian source briefed on the negotiations said a deal was possible before the November 3 elections. US sources said the Trump administration wanted further concessions from Canada, while a Canadian industry source said any agreement could be narrow.
3. Trade dispute context
The countries' talks collapsed in August over issues including duties on medium- and heavy-duty vehicles. Trump has said tariffs on Canadian steel and auto imports will rise to 50% from January 1, 2027, and predicted on Sunday that the dispute would be resolved soon.
