US-Canada trade deal would introduce steel quota with 25% tariffs

The United States and Canada are inching toward a trade deal that would set a tariff-rate quota on Canadian steel, taxing imports at 25% up to a specified volume and slapping the full 50% rate on anything beyond that. The framework represents the first serious attempt to dial back the escalating tariff war between the two countries since duties on Canadian metals spiraled out of control in 2025. Negotiations described as intense ran from August 19 to 21, 2026, with a midnight deadline looming that would trigger even steeper tariffs on additional Canadian goods. How the tariffs got here The current mess traces back to Section 232, the national security provision the US has used to justify tariffs on imported metals. Washington imposed 25% duties on Canadian steel and aluminum starting in March 2025. By June 2025, those tariffs had doubled to 50%. Canada didn’t sit quietly. Ottawa rolled out its own retaliatory measures, including slashing tariff-rate quotas on non-USMCA steel imports to just 20% of 2024 levels starting late 2025. What the deal looks like Under the deal taking shape, Canadian steel shipped to the US would face 25% tariffs on volumes up to the quota, with suggested an...