The United States and Canada are moving toward a trade deal establishing a tariff-rate quota on Canadian steel: imports would face 25% duties up to an annual volume of roughly 4 million metric tons, then 50% beyond that threshold. Intensive negotiations took place from August 19 to 21, 2026, with a midnight deadline threatening even steeper tariffs on additional Canadian goods. Washington justified these measures under Section 232, a national security provision, which led to 25% tariffs in March 2025, doubled to 50% by June 2025. Ottawa retaliated by drastically reducing its own tariff-rate quotas on non-USMCA steel imports. While aluminum remains unresolved, the auto sector could benefit from a rate reduction to 15%.
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