US and Canada reportedly discuss easing steel, auto tariffs
Sources say Washington and Ottawa are negotiating lower tariffs on Canadian steel and auto imports, with a possible agreement before the November 3 midterms, though the talks remain unconfirmed.
According to a report citing two Canadian and four American sources, officials from both countries are discussing a reduction in tariffs currently applied to Canadian steel and automobile exports to the United States. The talks are said to be driven in part by growing frustration in US border states over the cost of existing tariffs.
The political backdrop includes Michigan Republican Senate candidate Mike Rogers, who has now come out against the tariffs, adding pressure on the administration ahead of the midterm elections.
A Canadian industry source cited in the report cautioned that any resulting deal is likely to be limited in scope, saying it would happen quickly if it happens at all, but would probably be “narrowed.” The report also notes that the US is pushing for further concessions from Canada before any agreement is finalized.
Under current plans, tariffs on Canadian autos and steel are scheduled to rise to 50% starting January 1. US President Donald Trump said over the weekend at a rally that a deal could be reached “soon,” though no timeline or details were confirmed.
Given the history of premature reports on US-Canada trade talks, the situation should be treated as unconfirmed until an official announcement is made by either government.
Why it matters for markets: Any shift in US-Canada tariff policy would affect trade flows in steel and autos, and could influence USD/CAD through changes in cross-border trade costs and investor sentiment toward North American supply chains. A confirmed deal easing tariffs would generally be seen as reducing trade-policy risk for industrial and auto-sector stocks.
Sources: Investing.com (economy); investingLive