'U.S., Canada Working On Deal To Ease U.S. Tariffs On Canadian Steel And Auto Imports' - Reuters Exclusive

Talks focus on Section 232 duties on Canadian steel and autos, sources say
Deal could come before November 3 midterms, Canadian sources say
Trump has said steel and auto tariffs to rise to 50% from January 1, 2027
OTTAWA,/WASHINGTON, Oct 26 (Reuters) - The United States and Canada are working on a deal to ease US tariffs on Canadian steel and autos, two US and four Canadian sources said, as the two governments try to repair relations that soured after trade talks broke down in August.

The talks focus on tariffs imposed under Section 232 of US trade law, including up to 50% tariff on Canadian steel and a 25% tariff on autos, with negotiators discussing potential relief from those duties.

The negotiations come as US President Donald Trump faces record-low approval ratings and his Republican Party risks losing control of Congress in next week's midterm elections. Tariffs on Canadian imports have become apolitical liability for Trump, with Republican candidates in border states calling for an end to the trade war with Canada.

One Canadian source briefed on the negotiations said a deal on steel and auto tariffs was possible before the November 3 elections, while US sources said the Trump administration wanted Canada to make further concessions. The sources spoke on condition of anonymity because the talks are private.

The Section 232 tariffs are administered by the Commerce Department, putting Commerce Secretary Howard Lutnick rather than the US Trade Representative's office at the center of the negotiations, sources on both sides of the border said.

Lutnick and Canada’s Dominic LeBlanc, the minister responsible for Canada-U.S. trade, have been in regular contact recently, one of the sources said.

LeBlanc’s office said Canada remains in contact with Washington.