Steel and aluminum producers in Canada stand to gain the most concrete win from a tentative trade agreement with the United States, with the rate on their exports set to be cut in half. A source with knowledge of the agreement said Washington’s tariffs on Canadian steel and aluminum are dropping to 25% from 50%.
For more than a year, both industries have shouldered levies of 25% or higher, so the reduction represents a substantial reversal. Steel, aluminum, autos and lumber have all been targets of Ottawa’s push for relief, and Washington’s willingness to cut the metals rate emerged as a central point of contention in the negotiations.
Whether the relief holds is not yet settled. According to the source, talks over derivatives and exemptions are still underway, leaving the precise shape of the metals arrangement undecided.
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At the White House, President Donald Trump was vaguer when reporters raised the duties, saying the U.S. “may bring some of the tariffs down to a level where other countries are, because Canada was paying a higher tariff.” Canada-U.S. Trade Minister Dominic LeBlanc would not confirm any reduction, noting that talks remained ongoing.
A threatened 50% tariff on roughly $20 billion worth of Canadian goods, among them wine and hockey sticks, has been paused for three days while both sides finalize documents. Trump announced the pause on Truth Social, declaring the countries had a “DEAL.”
Prime Minister Mark Carney, who briefed cabinet and the premiers on Wednesday, said Canada “entered these discussions with the best overall trade terms” and was moving toward an agreement securing the best terms in its most important strategic sectors.
Autos could also be affected, Trump suggested, with the current 25% tariff having triggered plant closures and job losses in Ontario. “We’re reducing it a little bit,” he said. The wider deal, he cautioned, remains “subject to the finalization of documents.”
