Canada says its trade talks with the United States have made only limited progress. A Canadian government official with knowledge of the discussions, speaking to Reuters on condition of anonymity on Wednesday, said that while discussions have continued, "there has been limited progress" — and the talks are focused on the steepest American tariffs: 50 percent on Canadian steel and 25 percent on autos.
Prime Minister Mark Carney told reporters the same day that Canada is ready to sign an agreement that serves both nations, adding: "If those deals present themselves, we will pursue them, but we're not at that position right now." A U.S. government official described "significant ongoing talks," and the White House said the Commerce Department and the U.S. Trade Representative are both working the file. Because the tariffs are Section 232 measures run by Commerce, Secretary Howard Lutnick — rather than the trade representative — sits at the centre of the talks opposite Canada's trade minister, Dominic LeBlanc, and the two men have been in regular contact.
The duties at stake have been in force for more than a year: 50 percent on Canadian steel since June 2025, and 25 percent on autos, which experts estimate works out to roughly 17 to 18 percent on USMCA-qualifying vehicles because the charge falls only on non-U.S. content. A broader round of talks collapsed in August, when Canada suspended negotiations and Washington applied 50 percent duties to a wide range of Canadian goods; the sides returned to the table in October, working on a narrower steel-and-auto deal. One Canadian source briefed on the talks said such a deal was possible before the November 3 midterms; U.S. sources said Washington wants further Canadian concessions first. President Trump said on Sunday the dispute would be resolved "soon," and his National Economic Council director, Kevin Hassett, has called the two sides "very close."
The administration's stated case is that the tariffs put American metalworkers first and rebuild domestic supply chains. USTR Jamieson Greer has said Canada was offered the "best deal in the world," which would have cut steel and aluminum tariffs to 25 percent, and organisations representing most U.S. steel production wrote to Lutnick and Greer in September crediting the duties with $47 billion in announced steel projects and thousands of jobs. The pressure runs the other way inside the U.S. too: Republican candidates in border states, including Senator Susan Collins of Maine and Michigan Senate hopeful Mike Rogers, have called for the trade war to end, and Michigan Governor Gretchen Whitmer warns the tariffs tax Michigan residents and threaten auto jobs. If no deal lands, a further deadline looms: the president has threatened to raise tariffs on Canadian cars, trucks, parts and steel to 50 percent on January 1.
For citizens, this is a fight over the price of a car and the future of factory work. Expert estimates summarised by the Council on Foreign Relations put the tariff effect at roughly 12 percent on new vehicle prices in the short run — about $6,200 a vehicle — easing to about 5 percent over time, and one dealer survey found prices of Canada-assembled vehicles already up nearly $4,000 since October 2025. Set against that, the administration and the steel industry credit the tariffs with $47 billion of announced steel projects and thousands of American jobs. A deal before January would decide which of those two forces — cheaper cars or protected metal jobs — reaches American households first.
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