The United States and Canada are moving toward an agreement to ease US tariffs on Canadian steel and automobiles, Reuters reported, citing sources familiar with the talks. Both governments are seeking to improve trade relations after negotiations collapsed in August.
The discussions concern tariffs imposed under Section 232 of the US Trade Expansion Act, which reach 50% on Canadian steel and 25% on automobiles. US Commerce Secretary Howard Lutnick and Dominic LeBlanc, Canada’s minister responsible for Canada-US trade, have remained in regular contact. The Office of the US Trade Representative is also involved in discussions on the broader framework of a possible agreement.
A Canadian source said a deal could be reached before the US midterm elections on November 3. US sources said Washington was seeking further concessions. A Canadian industry source suggested an agreement could come together quickly but would probably be limited in scope.
Canadian Prime Minister Mark Carney confirmed that the talks had gained momentum. He said progress reflected Washington moving closer to Ottawa’s position, while Canada’s stance remained unchanged.
Tariffs on medium- and heavy-duty vehicles remain a point of contention; disagreements over them contributed to the breakdown of the previous talks. US automakers are also seeking relief, as the duties have raised the cost of shipping vehicles and components across the border. Republican candidates in border states have called for the trade dispute to be resolved before the elections.
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