U.S. and Canada negotiate to reduce Section 232 steel and auto tariffs
American and Canadian officials are discussing relief from high tariffs on Canadian steel and automobiles as both governments seek to mend strained trade relations ahead of the November elections.
Washington and Ottawa are engaged in negotiations aimed at easing U.S. tariffs imposed under Section 232 of the trade law on Canadian steel and automobiles, sources said. The tariffs, which can reach 50% on steel and 25% on vehicles, have been a point of contention since talks broke down in August.
U.S. officials, led by Commerce Secretary Howard Lutnick, are in regular contact with Canada’s trade minister Dominic LeBlanc. LeBlanc’s office confirmed ongoing dialogue and expressed readiness to work "in good faith towards a more mutually beneficial trading relationship that respects Canada’s interests."
Two U.S. and four Canadian sources, speaking on condition of anonymity, indicated that a limited agreement could be reached before the November 3 midterm elections, though the United States is seeking additional concessions from Canada. A Canadian industry source added that any deal would likely be narrow and swift if it materializes.
The negotiations come as President Donald Trump faces low approval ratings and Republican candidates in border states have called for an end to the trade dispute. Trump has previously announced plans to raise the steel and auto tariffs to 50% starting January 1, 2027, but also signed an order removing 50% tariffs on certain Canadian agricultural and forestry products.
The White House, the Commerce Department and the U.S. Trade Representative’s office have not responded to requests for comment.