Agreement before midterms?: USA and Canada are apparently negotiating tariff reductions

Ahead of the US congressional elections, President Trump is struggling with poor poll numbers. US tariffs on Canadian products have also become a burden in the election campaign - especially for Republican candidates on the border. Now a quick solution is needed, as insiders report.

According to insiders, the USA and Canada are working on an agreement to reduce US tariffs on Canadian steel and cars. The two governments want to improve their relations, which have cooled after the failure of trade talks in August, as the Reuters news agency learned from two people from the USA and four from Canada familiar with the process. At the heart of the negotiations are tariffs of up to 50 percent on steel and 25 percent on cars.

According to a Canadian insider, an agreement is possible before the US congressional elections on November 3rd. However, the US government is pressing for further concessions from Canada. On the US side, the talks are being led by Trade Minister Howard Lutnick, who is in regular contact with the responsible Canadian minister, Dominic LeBlanc. His ministry said that it was in a constructive dialogue with the USA and was ready for a mutually beneficial trade relationship.

The negotiations are taking place against the backdrop of historically low poll numbers for US President Donald Trump. His Republicans are threatened with losing the majority in Congress in next week's midterm elections. The tariffs have become a political liability for Trump as Republican candidates in border states call for an end to the trade dispute.

The talks between the two countries failed in August, among other things, over the question of whether taxes on medium and heavy commercial vehicles should be reduced. Trump had announced that he would increase tariffs on steel and car imports from Canada to 50 percent on January 1, 2027. However, at a campaign event on Sunday, he promised an early solution to the dispute. On Friday, he issued a decree lifting 50 percent tariffs on some Canadian agricultural and forest products.