Canada US tariff talks have picked up again, a week before the American midterm elections. On Monday, October 26, 2026, Prime Minister Mark Carney said discussions had intensified slightly. The same day, Reuters reported that the two governments are negotiating relief from American duties on Canadian steel and vehicles, though no agreement has been announced.
Key facts (as of October 2026)
- US tariffs on Canadian goods reach up to 50% on steel and 25% on autos, according to Reuters.
- Talks collapsed in August, after which Washington put 50% tariffs on about $20 billion of Canadian goods, AP reported.
- The US midterm elections take place on November 3, and some Republican candidates in border states want the trade fight to end.
What is happening in the Canada US tariff talks?
Citing two American and four Canadian sources, Reuters reported that negotiators are trying to reduce the steel and auto duties that Washington imposes under Section 232 of US trade law. A Canadian source told the agency that a deal before the midterms was possible. US sources, however, said the administration still wants more concessions from Ottawa.
Carney said the pace of talks had stepped up only a little, AP reported. He insisted that Canada had not shifted its stance, and argued that any progress came because the U.S. is “coming closer to our position.” Meanwhile, the office of trade minister Dominic LeBlanc described the two sides as being in constructive dialogue.
Washington sounded more upbeat. White House economic adviser Kevin Hassett told Fox News on Sunday that the countries were “very close to finally having a deal,” Benzinga reported.
Why do the Canada US tariff talks matter?
Canada and the United States run one of the most tightly linked trading relationships in the world, especially in cars and car parts. Tariffs on that trade raise costs on both sides of the border. If you want Canadian coverage of the talks, our guide to watching CBC News in the US lists the free official options.
Politics in the US also matters here. AP noted that Michigan Republican Senate candidate Mike Rogers said in an ad that Canada is not an enemy and the tariff war should stop. Maine Senator Susan Collins had pressed the administration to ease duties on Canadian goods that farmers and businesses use.
For European readers, the talks are worth watching for another reason. Canada is trying to sell more beyond the US, and Carney is due to host EU leaders in Montreal this Thursday and Friday, according to AP.
What led to this?
The two countries looked close to an agreement in August, but Canada turned down the US terms, saying they crossed its red lines, AP reported. Reuters said the talks stumbled partly over tariff relief for medium and heavy-duty trucks.
After the talks broke down, Washington placed 50% tariffs on roughly $20 billion of Canadian goods, and Canada responded with measures of its own. President Trump has also said he would raise steel and auto tariffs on Canada to 50% from January 1, 2027, Reuters reported.
Then came a partial easing. On Friday, October 23, Trump signed an order removing 50% tariffs on some Canadian farm and forestry products, according to Reuters. The White House listed items such as plywood, some paper products and packing crates among the exemptions, Reuters said. At the same time, the administration added other goods to the tariff list, among them certain valves and carpets, AP and Reuters reported.
How have both sides framed the Canada US tariff talks?
Trump often cites the US trade deficit with Canada. AP pointed out that energy imports account for more than the whole gap, and that without energy the US runs a surplus with its neighbor. At a Michigan rally on Sunday, Trump predicted the dispute would be resolved soon, AP reported.
Ottawa, for its part, is hedging. Carney aims to double Canadian exports to countries other than the US over the next decade, according to AP. On the US side, Commerce Secretary Howard Lutnick is a central figure because his department runs the Section 232 tariffs, Reuters said.
What happens next in the Canada US tariff talks?
No deadline has been set publicly. A Canadian industry source told Reuters that any deal would likely be narrow. In an interview with a Detroit TV station, Trump said a deal might land before the vote but could also take months, AP reported.
The dates to watch are the EU leaders’ visit to Montreal later this week and the US elections on November 3.
How to follow live coverage
Markets and business channels follow trade news closely. CNBC covers tariffs and their effect on stocks during US trading hours, while CNN and CBS News track the political side as the midterms approach. For a wider look at the vote, read our explainer on what the US midterms mean for Europe, or browse more stories in Hot Topics.
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Frequently asked questions
Has a Canada US tariff deal been signed?
No. As of October 27, 2026, both sides say talks are moving, but no agreement has been announced. Reuters reported that a deal before November 3 was possible but not certain.
Which tariffs are under discussion?
Mainly the US Section 232 duties of up to 50% on Canadian steel and 25% on autos, according to Reuters.
Why did the earlier talks fail?
Canada rejected US terms in August, saying they crossed its red lines. Reuters reported that tariffs on medium and heavy-duty vehicles were one of the issues.
