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

The United States and Canada are negotiating to alleviate US tariffs on Canadian steel and automobiles, according to sources familiar with the discussions. The talks aim to address tariffs imposed under Section 232 of US trade law, which currently include up to 50% tariffs on Canadian steel and 25% on automobiles. US President Donald Trump's approval rating stands at just 32%, making the trade dispute a political liability, especially with Republican candidates in border states calling for an end to the trade war with Canada ahead of the midterm elections on November 3.

A deal on steel and auto tariffs is reportedly within reach before the November 3 elections, although US sources suggest the Trump administration would like Canada to make additional concessions. Commerce Secretary Howard Lutnick is leading the US negotiations, while Canada's Minister responsible for Canada-US trade, Dominic LeBlanc, has been in regular contact with Lutnick.

LeBlanc's office stated they are ready to work constructively towards a more mutually beneficial trading relationship that respects Canada's interests. The Canadian Prime Minister, Mark Carney, acknowledged a slight intensification in talks with the United States, but did not provide specifics on the progress made. Canadian industry sources believe a deal could be reached quickly, possibly as a narrowed deal if one occurs at all.