US-Canada Trade Deal Nears Completion with Steel Quota and Tariffs

The US and Canada are nearing a trade deal that would impose tariffs on Canadian steel imports. The framework, agreed upon after intense negotiations from August 19 to 21, sets a tariff-rate quota for Canadian steel at 25% up to a specified volume of approximately 4 million metric tons.

Any steel shipments beyond this cap would still be subject to the existing 50% duty rate. The deal primarily focuses on steel, but aluminum and auto tariffs also entered the conversation.

The current tariff war between the two countries dates back to March 2025, when Washington imposed 25% duties on Canadian steel and aluminum under Section 232's national security provision. These tariffs doubled to 50% by June 2025.