US, Canada Near Deal to Slash Auto, Metal Tariffs

The United States and Canada are nearing a trade agreement that would significantly lower tariffs on Canadian-made vehicles and metals, according to a source familiar with the negotiations. The proposed deal would reduce the top-line tariff on Canadian-built cars and trucks to 15% from the current 25%. Tariffs on Canadian steel and aluminum would be halved to 25%.

However, the reduced steel tariff would apply only to a specific import volume under a quota arrangement. One source indicated the quota would likely be set at 4 million metric tons per year, with imports above that level subject to the original 50% tariff.

The development comes after President Donald Trump threatened new tariffs on Canadian imports but pushed the deadline to Saturday, citing progress in talks. Trump told reporters the two sides had reached an agreement but later tempered his remarks, saying the US would "probably have a deal with Canada."

Canadian Prime Minister Mark Carney said on X that the two sides were "moving towards an agreement." He was scheduled to brief provincial premiers later Wednesday.

US Trade Representative Jamieson Greer expressed confidence after meeting Canadian counterparts, saying the agreement would protect American workers and strengthen the North American economy. Trump said the US was reducing the auto tariff "a little bit" from the high number Canada was paying.

Negotiators face a deadline of 12:01 a.m. EDT Saturday, when tariffs on $20 billion worth of Canadian goods are scheduled to take effect. It remains unclear whether auto tariffs will be resolved this week or delayed until a broader review of the US-Mexico-Canada trade deal.

A White House proclamation said Canada had committed to removing what Washington considers discriminatory treatment of US alcoholic beverages, cheese, and motor vehicles. A Leger poll showed 56% of Canadians want Carney to make no further concessions to the US.