US and Canada in Talks to Cut Steel and Auto Tariffs Ahead of November 3 Midterms

The United States and Canada are actively negotiating a deal to reduce American tariffs on Canadian steel and automobile imports, with at least one Canadian source saying an agreement could be reached before the November 3 midterm elections. The talks, confirmed by two US sources and four Canadian sources to Reuters, center on Section 232 duties that currently include levies of up to 50% on Canadian steel and 25% on autos.

Commerce Secretary Howard Lutnick and Canada's Dominic LeBlanc have been in regular contact, according to one source, and LeBlanc's office confirmed that Canada remains in "constructive dialogue" with its US counterparts. However, US sources indicated the Trump administration is pressing Canada for further concessions before any relief is granted, and no deal has been finalized.

The urgency is sharpened by a looming deadline: President Trump has said the steel and auto tariffs will rise to 50% starting January 1, 2027. At a Sunday rally Trump predicted the dispute would be resolved "soon." The White House, the Commerce Department, and the US Trade Representative did not immediately respond to requests for comment. Automakers and steelmakers with Canadian exposure, including GM, Ford, Stellantis, and Cleveland-Cliffs, are among those watching the outcome closely.