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October 28, 2026.
The U.S. and Canada could be inching toward a deal that would lessen the countries’ months-long trade war, published reports say. For months, the longtime allies and trading partners have been stuck over the White House’s demand that Canada accept new U.S. tariffs on manufacturing sectors such as automobiles and steel. Now as the U.S. approaches an election that will determine which party will control Congress for the remainder of President Donald Trump’s term, there are signs a deal on some tariffs could come soon. After months of discussions ended without a trade agreement, in August the U.S. put 50% tariffs on hundreds of categories of Canadian goods, worth about $20 billion. In response, the Canadian government put a similar number of tariffs on agricultural and other U.S. products a month later.
Now Reuters reports that talks are centering around the 50% tariff on Canadian steel and 25% tariff on cars currently in effect. Trump has threated to hit Canada with a 50% tariff on Canadian-made cars, an amount that an executive with American Honda Motor Co. said would be “catastrophic.” Reuters said its sources indicated a deal could come before the Nov. 3 elections in the U.S. Canadian and American trade officials acknowledged that representatives from both countries have been in discussions recently. 'Canada remains in constructive dialogue with our U.S. counterparts on a range of priorities,' a spokesperson for Dominic LeBlanc, the minister who handles U.S.-Canada trade, said in a statement.
'We stand ready to work constructively and in good faith towards a more mutually beneficial trading relationship that respects Canada’s interests.' But on Wednesday, Prime Minister Mark Carney said Canada was unlikely to reach an agreement that quickly. Despite Carney’s dismissal of an imminent deal, the White House said it was lifting some tariffs, including those packing materials used in agriculture. However, the administration said it was adding new tariffs in their place.
Author: Michael McConnell
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