US and Canada Discuss Deal to Cut Auto and Steel Tariffs, Sources Say

Weekend chatter has focused on new trade negotiations led by Lutnick, but claims of “a Canada–U.S. trade deal” seem about as common as reports of “peace in Hormuz,” so treat this one skeptically.

Reuters cited two Canadian and four American sources who said talks are underway to reduce tariffs on autos and steel, as opposition to the duties grows in U.S. border states and Michigan Republican Senate candidate Mike Rogers campaigns against them.

Although the U.S. is seeking further concessions from Canada, the report says an agreement could be reached before the November 3 midterm elections.

• The planned increase in tariffs on Canadian autos and steel to 50% is still set to take effect on January 1.
• Trump said at a rally over the weekend that a deal could come “soon.”
• A “Canadian industry source” said any agreement, if reached, would likely be limited and could be reached quickly.

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