US, Canada in talks to ease steel and auto tariffs: report

The United States ​and Canada are working on a deal to ease US tariffs on Canadian steel and autos, as the two governments try to repair relations that soured after trade talks broke down in August, Reuters reported on Monday.

The talks focus on tariffs imposed under Section 232 of US trade law, including up to 50% tariff on Canadian steel and a 25% tariff on autos, with negotiators discussing potential relief from those duties.

A deal on steel and auto tariffs was possible before the November 3 elections, one source said, while US sources said the Trump administration wanted ​Canada to make further concessions.

The Section 232 tariffs are administered by the Commerce Department, putting ​Commerce Secretary Howard Lutnick rather than the US Trade Representative's office at the center of the negotiations.

Lutnick and Canada's Dominic LeBlanc, the minister responsible for Canada-US trade, have been in regular contact recently, the report said.

"Canada remains in constructive dialogue with our U.S. counterparts on a range of priorities," a spokesperson ​for LeBlanc, said in a statement. "We stand ready to work constructively and in good faith towards a more mutually beneficial trading relationship that respects Canada’s ​interests.”

The US Trade Representative's Office and Canada have also been in contact in recent days regarding the overall architecture of any deal and all other trade issues, a USTR official ‌said, according to the report.

U.S. companies to watch include Nucor (NUE), Steel Dynamics (STLD), Cleveland-Cliffs (CLF), and Alcoa (AA). ETFs: (SLX), (XME), and (XLB).