US-Canada Trade Talks Focus on Lowering Steel and Aluminum Tariffs
The United States and Canada are engaged in active negotiations to lower tariffs on some Canadian steel and aluminum exports from 50% back down to 25%. This proposed tariff-rate quota (TRQ) framework would allow Canadian exporters to access a reduced tariff rate if they meet certain volume commitments or other concessions.
The current 50% tariff, which was doubled from the original 25% rate set in March 2025, has been in place since June 4, 2025. Canada responded with retaliatory tariffs on specific US steel and aluminum imports, which remain in force through at least 2027.
The talks are taking place alongside a broader review of the USMCA trade agreement, which governs commerce between the US, Canada, and Mexico. Canadian Prime Minister Mark Carney has emphasized that metals cannot be carved out as a standalone issue and must be part of a comprehensive deal that benefits both countries.
The deadline for resolving these tariffs is approaching, with August 19, 2026, marked as the cutoff for new or expanded tariffs. Canada is reportedly preparing to present formal proposals in the near term, which could accelerate the timeline.