US, Canada Pursue Deal to Lower Steel and Auto Tariffs

The United States and Canada are in talks to reach an agreement to lower US tariffs on Canadian steel and automobiles, according to two American and four Canadian sources. The discussions take place as both countries seek to mend strained bilateral ties after trade negotiations collapsed in August. The talks focus on tariffs imposed under section 232 of US trade law, including duties of up to 50% on Canadian steel and 25% on automobiles. Government officials are considering potential measures to ease trade restrictions. 

The US Department of Commerce oversees the tariffs imposed under Section 232 of US trade law, placing Commerce Secretary Howard Lutnick at the forefront of negotiations with Canada. The US Department of Commerce primarily deals with negotiations over these specific tariffs, whereas broader trade talks are overseen by the Office of the US Trade Representative.

Also read: NTT Appoints Rawan Shalhoub as Senior Executive, Head of People & Culture

As a result, Lutnick is likely to take a leading role in talks focused on resolving tariff issues affecting Canadian steel and automobiles, as both countries consider measures to reduce trade restrictions and strengthen economic ties. In recent days, the Office of the US Trade Representative and Canadian officials have also discussed the wider scope of a possible agreement, along with other unresolved trade issues, according to a USTR official.