US and Canada discuss easing tariffs on steel and automobiles — Korea Herald

The United States and Canada are working on an agreement that could ease US tariffs on Canadian steel and automobiles. As Korea Herald reports, two US and four Canadian sources familiar with the negotiations said so. Consultations intensified after trade dialogue between the countries broke down in August.

Section 232 tariffs

The negotiations concern tariffs imposed under Section 232 of US trade legislation. In particular, they involve a tariff of up to 50% on Canadian steel and 25% on automobiles. The sides are discussing a possible easing of these restrictions.

One Canadian source informed about the course of the negotiations suggested that an agreement on steel and automobile tariffs could be reached before the November 3 election. US sources, meanwhile, said that the administration of US President Donald Trump expects additional concessions from Canada. The interlocutors spoke on condition of anonymity because the negotiations are not public.

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Officials’ contacts

According to sources on both sides of the border, Section 232 tariffs are administered by the US Department of Commerce, so its head, Howard Lutnick, rather than the Office of the US Trade Representative, plays a key role in the negotiations. Lutnick has recently been in regular contact with Dominic LeBlanc, the Canadian minister responsible for trade with the United States.

Canadian Prime Minister Mark Carney reported a “slight intensification” of negotiations with the United States and said Ottawa’s position had not changed. A spokesperson for LeBlanc said that Canada is conducting a constructive dialogue with US partners and is ready to work toward mutually beneficial trade relations while taking its interests into account.

Trade negotiations in August stopped, in particular, over the issue of reducing tariffs on medium- and heavy-duty vehicles, which are important for Canadian plants. Trump had previously said he intended to raise tariffs on steel and automobile imports from Canada to 50% starting January 1, 2027.