US, Canada working on deal to ease steel, auto tariffs, sources say

Key Points:

• The United States and Canada are negotiating to ease US tariffs on Canadian steel and autos, aiming to repair strained trade relations after talks collapsed in August.
• The discussions focus on tariffs imposed under Section 232 of US trade law, including up to 50% on Canadian steel and 25% on autos, with potential relief being considered.
• The negotiations are politically motivated as US President Donald Trump faces low approval ratings and risks losing Congress control in the upcoming midterm elections, with Republican candidates in border states pushing to end the trade conflict.
• Canadian and US officials, including Commerce Secretary Howard Lutnick and Canadian Minister Dominic LeBlanc, have been in regular contact, with sources indicating a possible deal before the November 3 elections, though it may be limited in scope.
• Trump has previously threatened to raise tariffs further by 2027 but recently removed 50% tariffs on some Canadian agricultural and forestry products, signaling potential progress in trade relations.