50% on steel and 25% on vehicles from Canada: Washington and Ottawa are negotiating to reduce the heavy American customs duties introduced in August
In August, the United States imposed tariffs of 50% on Canadian steel and 25% on vehicles from Ottawa.
The United States and Canada are negotiating to ease U.S. tariffs on Canadian steel and vehicles, two U.S. and four Canadian sources said Monday, as the two governments seek to rebuild strained ties after the failure of trade negotiations this summer. In August, the Trump administration introduced tariffs of 50% on Canadian steel and 25% on vehicles from Ottawa. The resumption of negotiations comes a few days before the mid-term elections on November 3, while President Trump enjoys a low popularity rating and faces discontent among the American population with the cost of living.
“A slight intensification” of discussions Republican candidates have called for an end to the trade war against Canada. The hypothesis of an agreement on steel and vehicles before November 3 is probable, according to a Canadian source. American sources suggest that Donald Trump is demanding more concessions from Mark Carney's government.
The Canadian Prime Minister recognized "a slight intensification" of discussions with Washington, specifying that Ottawa had not changed its position. “If progress has been made, it is because the United States is moving closer to our position,” he told reporters, without giving details. US Commerce Secretary Howard Lutnick and Canadian Internal Trade Minister Dominic LeBlanc speak regularly, according to one of the sources.
“Canada remains engaged in constructive dialogue with its Canadian counterparts on a range of subjects,” said a spokesperson for Dominic LeBlanc. "We stand ready to work constructively and in good faith to establish a more mutually beneficial trade relationship that respects Canada's interests." A Canadian industry source believes that an agreement can be reached quickly but doubts that it will be large-scale.
"If it happens, it will be quick. But I have a feeling it will be a limited deal, if it ever happens.
Machine-translated from French
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- BFM Business27 Oct, 10:13
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