The U.S. and Canada are reportedly weighing a limited agreement to reduce steep steel and automotive tariffs, with negotiators exploring a possible breakthrough before the Nov. 3 midterm elections.
The talks focus on Section 232 tariffs, including duties reaching 50% on Canadian steel and 25% on automobiles. Officials are considering targeted relief rather than a comprehensive resolution to broader trade disputes, Reuters reported on Monday, citing U.S. and Canadian sources.
U.S. officials said the Donald Trump administration is seeking additional concessions from Ottawa. Howard Lutnick, the U.S. commerce secretary, is leading the discussions because his department administers Section 232 tariffs. He has maintained regular contact with Dominic LeBlanc, Canada's trade minister, as per the report.
A Canadian industry source told the publication that a deal could come quickly but would likely be limited in scope, if it materializes at all.
Canadian Prime Minister Mark Carney described a "slight intensification" in negotiations but said Ottawa's position remains unchanged. He said recent movement reflected Washington drawing closer to Canada's stance.
Department of Commerce did not immediately respond to MarketDash's request for comments.
Trump Signals Quick Resolution To Canada Tariff Dispute
The latest discussions come after Trump exempted select Canadian imports from 50% tariffs on Friday, including plywood, paper products, machinery, refrigeration equipment, packing materials and seaweed. However, the President also added products ranging from carpets and shampoos to air conditioners, coffins, canoes and archery equipment to the list of Canadian goods facing 50% tariffs.
Two days later, Trump said at a Michigan rally that the dispute would be resolved shortly and that Canada was willing to make broad concessions. "They're willing to give us anything at this moment," he said. Last month, Trump said he expects Canada to seek a resolution to the trade dispute within three to four weeks, aiming to remove tariffs and reach a fair agreement. Trump added that the U.S. would "win everything."
Meanwhile, Ottawa has also ramped up investment ties with the United States. Last week, Canadian jet-maker Bombardier Inc. (OTC: BDRBF) announced plans to invest $270 million in the U.S. and create jobs across Texas, Indiana, and Connecticut. The company announced a $50 million investment in Wichita, Kansas, to build a North American Learning Center focused on talent development and long-term operational growth.
