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The United States and Canada are working towards an agreement to reduce American tariffs on Canadian steel and automobiles before the November 3 midterm elections. The negotiations come amid strained trade relations following the collapse of earlier discussions in August.
The proposed deal centres on tariffs imposed under Section 232 of US trade law, including duties of up to 50 per cent on Canadian steel and 25 per cent on automobiles. Officials are exploring possible relief from the charges, which have increased pressure on businesses operating across the two countries.
US Commerce Secretary Howard Lutnick and Canada’s minister responsible for trade relations with Washington, Dominic LeBlanc, have reportedly been in regular contact as discussions continue. However, American negotiators are said to be seeking further concessions from Canada before an agreement can be reached.
Canadian Prime Minister Mark Carney confirmed that engagement between both governments had intensified slightly, while maintaining that Ottawa would not abandon its national and economic interests to secure a deal. Canadian officials have also indicated their willingness to pursue a mutually beneficial arrangement.
The negotiations carry significant political and economic implications ahead of the US midterm elections, as tariffs on Canadian products have become a concern for some American businesses and Republican candidates in border states. Although a limited agreement could emerge soon, no final deal has been confirmed, and uncertainty remains over whether both governments can resolve their differences before the elections.
