US and Canada Near Agreement on Tariff Reductions Across Multiple Sectors
Negotiators say a deal to lower tariffs on autos, steel, aluminum, lumber and other goods is close, with talks continuing ahead of a midnight deadline.
U.S. and Canadian trade teams said they are close to finalizing a tariff-relief agreement that would cut duties on automobiles, steel, aluminum, lumber and other products. The negotiations resumed Thursday at the U.S. Trade Representative’s office in Washington after a three-day pause, with Canadian lead negotiator Dominic LeBlanc telling reporters the talks are progressing and will continue.
President Donald Trump expressed optimism, describing any forthcoming pact as “fair” and noting that it would increase market access for U.S. producers. Justin Trudeau’s office indicated that the government is still reviewing the details, while progress on specific items such as liquor trade has been reported.
If reached, the deal could lower the 25% auto-parts tariff imposed last year to about 15% and restore exemptions for some Canadian steel under the United States-Mexico-Canada Agreement. U.S. officials have suggested that metal tariffs could be reduced to levels comparable to those applied to other trading partners, which currently stand at 25%.
Industry groups, including the Coalition for a Prosperous America, warned that lowering “national security” tariffs on critical sectors could undermine policy objectives. The agreement is also expected to address Canadian digital services taxes and potentially revive the Keystone XL pipeline project.
The parties aim to complete the negotiations before a midnight deadline, after which new 50% tariffs slated to take effect on Saturday morning would be enforced unless a deal is signed.