- The US and Canada are working on a deal to ease US tariffs on Canadian steel and autos, according to two US and four Canadian sources.
- Talks focus on Section 232 tariffs, including up to 50% on Canadian steel and 25% on autos, with negotiators discussing potential relief.
- Commerce Secretary Howard Lutnick, not the USTR, is central to the negotiations because the Commerce Department administers Section 232 tariffs.
- US sources say the Trump administration wants Canada to make further concessions before a deal.
- Trade talks collapsed in August over medium- and heavy-duty vehicle tariffs, which matter to Canadian factories.
- Trump previously set steel and auto tariffs on Canada to rise to 50% from January 1, 2027, and tariffs are a political liability ahead of the November 3 midterm elections.
Quotes
“If it happens, it'll happen fast. But my sense is it'll be a narrowed deal, if it even happens,”