U.S. Trade Secretary revives Canada-U.S. Trade discussions

These tariffs, imposed by President Donald Trump citing national security concerns, currently range up to 50 percent on steel and aluminum, 25 percent on vehicles, and 10 percent on softwood lumber.

Formalized negotiations could potentially resume later this week, according to two sources, and may involve U.S. Trade Representative Jamieson Greer. Discussions are expected to extend beyond Section 232 tariffs, potentially encompassing issues like the Keystone XL pipeline, diesel exports, and broader energy trade.

Lutnick’s previous involvement in the August negotiations was marked by last-minute demands related to cultural policies, trade agreements, and automobiles, ultimately contributing to the talks’ abrupt collapse. Canadian sources described their interactions with Greer during those earlier discussions as more “respectful and productive.”

The renewed engagement coincides with increasing political pressure on Trump ahead of the U.S. midterm elections on November 6th. Tariffs have become a focal point in several key Senate races, including Michigan, where Republican candidate Mike Rogers has publicly criticized them. Rogers stated on CBS’ “60 Minutes” that he “doesn’t like the tariffs” and has voiced concerns to Lutnick, expressing willingness to support congressional efforts to override the president’s tariff policies.

Prime Minister Mark Carney characterized the recent discussions as “constructive” and confirmed a “good conversation” with Trump. Carney stated that teams will work towards a mutually beneficial trade deal respecting Canada’s languages, culture, and sovereignty. Trump echoed this sentiment, stating they are “very close” to a deal that would benefit U.S. farmers and the country, while also being positive for Canada.

Two sources briefed on the conversations between the leaders revealed the first discussion lasted 45 minutes and primarily addressed trade. While Canadian negotiators remain cautious about Trump’s willingness to compromise, the prime minister believes he is serious about securing a deal. Discussions are anticipated to resemble those from August, potentially including reduced tariffs on Canadian steel and aluminum, and adjustments to provincial alcohol sales regulations. A key point of contention remains the tariffs on automobiles, with Canada seeking a broader reduction than the 15 percent the U.S. has offered.