The United States and Canada are working on a deal to ease US tariffs on Canadian steel and cars, Reuters reported, citing two US and four Canadian sources. The talks have resumed after talks between the two countries broke down in August.
The measures under discussion concern tariffs imposed under Section 232 of the US trade law. They include up to 50% on Canadian steel and 25% on cars. One of the Canadian sources said a deal could be reached before the November 3 midterm elections for Congress. However, US sources indicate that the Donald Trump administration is insisting that Canada make further concessions.
Carney: Washington is moving closer to Canadian position
Canadian Prime Minister Mark Carney confirmed that talks have intensified, but described the change as limited. “To the extent that progress has been made, it is because the United States is moving closer to our position“, Carney told reporters.
The office of the Canadian minister responsible for trade with the US, Dominique LeBlanc, said that Ottawa remains in constructive dialogue with Washington and is ready to work in good faith for a relationship that respects Canada's interests. On the American side, the negotiations are being led primarily by Commerce Secretary Howard Lutnick, since his department administers the Section 232 tariffs.
Deal remains uncertain
In August, talks broke down over differences, including whether the tariff relief should cover medium- and heavy-duty vehicles, which are important to Canadian factories. American automakers have been pushing for a reduction in the initial 25 percent tariffs that increase the cost of transporting cars and parts across the border.
Trump has already said that tariffs on steel and cars from Canada could be increased to 50 percent from January 1, 2027. At the same time, at the end of last week, he eliminated 50 percent tariffs on some Canadian agricultural and forestry products. According to Reuters, this decision could ease business in the state of Maine, where trade relations with Canada are a major issue.
Carney told the Associated Press that Canada is ready to resume negotiations if Washington acts in good faith, but is willing to wait months or even a change of US administration if an acceptable agreement is not reached. Asked whether a deal could be reached before the election, he replied: “That depends on the United States. They are a little difficult to predict.“
Donald Trump said at a campaign rally that Canada is ready to make significant concessions and that the dispute will be resolved “very soon“, but did not specify specific parameters or a date. Thus, a possible limited agreement on steel and cars is currently being discussed, without a confirmed final text.
Sources: uk.marketscreener.com, apnews.com