Canada-U.S. Trade Deal on Steel and Aluminum Nears Completion Ahead of APEC Summit
Table of Contents
A potential trade agreement encompassing steel, aluminum, and energy could be finalized between Prime Minister Mark carney and U.S. president Donald Trump at teh upcoming Asia-Pacific Economic Cooperation (APEC) summit later this month,according to sources familiar with the negotiations.
After months of stalled discussions, momentum has built following a recent meeting between the two leaders at the White House on October 7th. While a comprehensive deal remains elusive, progress on metals has offered a glimmer of hope for Canadian industries heavily impacted by U.S. tariffs.
Relief for Canadian Metals Industry in Sight
The prospective agreement would provide much-needed relief to Canada’s metals industry, which has borne the brunt of U.S.protectionist measures. The Trump management has imposed tariffs of 50% on steel and aluminum, and 25% on automobiles – with exceptions for vehicles compliant with the United States-Mexico-Canada Agreement (USMCA). Lumber exports have faced tariffs as high as 45%.
“Critically important progress was made over the past two weeks in Washington on steel and aluminum,” stated a senior official, though specific details remain confidential. The source indicated that Canada may need to accept quotas on steel imports in exchange for a reduction in tariffs. Conversely, Ottawa is firmly opposed to any tariffs or quotas on canadian aluminum, a material the U.S. requires.
Broader Trade Issues Remain Unresolved
Despite the potential breakthrough on metals, key sticking points remain regarding other crucial Canadian exports. The sources confirmed that the U.S. is not currently prepared to negotiate on automobiles or softwood lumber, two of Canada’s most significant trade relationships with the United States.
Negotiations, led by Canadian Minister of International trade dominic LeBlanc, Privy Council clerk Michael Sabia, and Canadian Ambassador Kirsten Hillman, have focused intensely on these issues. They have engaged with U.S. commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. LeBlanc and Sabia returned to Ottawa on Friday, but the possibility of another trip to Washington before Trump and his advisors depart thursday for Malaysia, Japan, and South Korea remains open.
Keystone XL and Critical Minerals on the Sidelines
The discussions have also touched upon the potential revival of the Keystone XL pipeline, previously cancelled by the Biden administration.Though,critical minerals – a resource the U.S. is actively seeking – are not currently part of these negotiations, according to one source.
.
APEC summit as Potential Deal Closer
A meeting between Carney and Trump at the APEC summit, which begins on October 29th in South Korea, could prove pivotal in finalizing any agreement.”A meeting at APEC between Mr. Carney and Mr.Trump could make all the difference to a accomplished conclusion,” a source revealed. While the Prime Minister’s Office has not yet formally scheduled a meeting, both leaders are expected to meet separately with Chinese President Xi jinping. Carney intends to address China’s ongoing ban on Canadian canola imports, which was implemented in response to Ottawa’s restrictions on Chinese-made electric vehicles.
The Prime Minister has resisted calls from unions, corporate leaders, and provincial premiers – including Ontario’s Doug Ford – to retaliate against U.S. tariffs.”There are times to hit back and times to talk and right now is the time to talk,” Carney stated last week. He also faces pressure from China and the provinces of Saskatchewan and manitoba to lift tariffs on Chinese electric vehicles in exchange for Beijing lifting its ban on Canadian canola.
These current talks are distinct from the more comprehensive renegotiations of the USMCA continental free-trade deal planned for the new year. The outcome of these discussions will have significant implications for the Canadian economy and its relationship with its largest trading partner.
