The United States and Canada are in the middle of talks that could lower tariffs on Canadian steel and aluminum exports to 25%. The deal is still being worked out and is not expected to apply to all products.
The negotiations followed President Donald Trump’s decision to pause the planned 50% tariffs on Canadian goods for 24 hours. He said the pause would give both sides more time to reach an agreement.
If the tariff cut is approved, the US would reduce its current 50% duty on steel and aluminum imports to about half of that level. The two countries are also discussing which products might be excluded and other changes to the scope of the duties.
The final terms of the broader trade deal are still unclear. Officials from the White House, the US Trade Representative’s office, and the office of Canadian Prime Minister Mark Carney have not yet responded to requests for comment.
The move could boost Canadian steel producer Algoma Steel Group, whose shares jumped 24% in Toronto. In the United States, Nucor Corp. fell 8.9% and Century Aluminum Co. dropped 11%.
Trump told reporters that he was willing to make concessions, saying, “Got to give something, and we’re doing certain things. We’re paying a high number. We’re reducing it a little bit.” He added that the changes would benefit farmers and manufacturers.
The US had imposed tariffs on steel and aluminum under Section 232 of the Trade Expansion Act last year. Those duties upset many trading partners, and Canada has been working to lower the steel tariff and duties on automobiles.
Manufacturing groups in the US are pushing for the tariff cut to include traceability requirements that would protect domestic aluminum production. They warn that 125,000 jobs in aluminum rolling, drawing and extruding could be at risk if the tariff reduction is too broad.
Canadian supplies currently make up about half of US aluminum consumption. The parties hope to reach a lasting agreement before the Friday deadline to avoid further trade tensions between the two close allies.