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      US and Canada Near Trade Deal on Steel Tariffs

      The United States and Canada are progressing towards a trade agreement that would establish a tariff-rate quota on Canadian steel imports. Under the proposed deal, Canadian steel would incur a 25% tariff up to a specified volume, while imports exceeding that quota would be subject to a 50% tariff. This agreement marks a significant effort to reduce the escalating trade tensions that have arisen since tariffs on Canadian metals were significantly increased in 2025.

      Intense negotiations took place from August 19 to 21, 2026, with a looming midnight deadline that threatened to impose even higher tariffs on additional Canadian goods. The current tariff situation stems from Section 232, which the US invoked to justify imposing 25% duties on Canadian steel and aluminum in March 2025, later escalating to 50% by June 2025. In response, Canada implemented its own retaliatory measures, including drastic cuts to tariff-rate quotas on non-USMCA steel imports.

      The proposed quota for Canadian steel is around 4 million metric tons annually, a figure that has become a contentious point in negotiations. Setting the quota too high could undermine the protective intent of the tariffs for American producers, while a low quota could restrict Canadian exporters' access to the US market. Discussions also touched on aluminum tariffs and potential adjustments to auto tariffs, which could see rates lowered to 15%.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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