U.S. to halve tariffs on Canada steel, aluminum, reports say
Steel News | 2026-08-20 12:08:14 | By Paul Ploumis
Talks between U.S. and Canadian trade advisers continued Aug. 19, less than 24 hours after President Donald Trump paused planned 50% levies on billions of dollars of Canadian goods to allow more time to negotiate.
U.S. to Halve Tariffs on Canada Steel, Aluminum, Reports Say
A tentative U.S.–Canada trade deal would cut tariffs on certain Canadian steel and aluminum exports to 25%, down from 50%, as negotiators work to finalize terms before an Aug. 21 deadline.
What Readers Should Know
- Tentative deal would lower tariffs on certain Canadian steel and aluminum exports to 25%.
- Details are not finalized; different rates could apply to some derivative products.
- Talks continued Aug. 19 after Trump paused planned 50% levies on billions of dollars of Canadian goods.
- Trump signaled U.S. concessions, saying, 'We're reducing it a little bit.'
- Canada is the top source of U.S. aluminum imports; U.S. has no capacity to meet its own demand.
- Manufacturing groups warn 125,000 U.S. jobs in aluminum rolling, drawing and extruding are at risk.
Why the Tariff Cut Matters
The tentative trade deal between the U.S. and Canada would lower tariffs on certain Canadian exports of steel and aluminum to 25%, according to people familiar with the matter. The move under discussion would generally halve U.S. tariffs on imports of the two metals, which currently face a 50% rate.
The details have yet to be finalized and are not expected to apply across the board. Different rates could apply to some derivative products that include those metals, said some of the people, who requested anonymity to discuss terms of the agreement before it is announced.
Talks between U.S. and Canadian trade advisers continued Aug. 19, less than 24 hours after President Donald Trump paused planned 50% levies on billions of dollars of Canadian goods to allow more time to negotiate. The planned changes to the metals tariffs could help unlock a lasting deal to avert the broader duties before an Aug. 21 deadline.
What the Inventory Data Showed
Canada is the top source of U.S. aluminum imports, though the U.S. has no capacity to meet its own demand and those tariff costs have been largely passed on in entirety to American buyers. Imported Canadian supplies currently make up about half of U.S. aluminum consumption.
Canada had focused its efforts on lowering the steel tariff, in particular, as well as the duties on automobiles. Last year, Trump imposed tariffs on imported steel and aluminum under Section 232 of the Trade Expansion Act as he erected his tariff wall around the U.S. economy. The duties irked many close U.S. trading partners and several negotiated deals with the administration to cap sectoral tariffs in exchange for making trade concessions.
What Happens Next
The full terms of the broader deal under discussion remained unclear as of afternoon Aug. 19. The White House, the office of the U.S. Trade Representative and office of the Canadian Prime Minister Mark Carney did not immediately respond to requests for comment.
On Aug. 19, Trump nodded to U.S. concessions in the ongoing talks. 'Got to give something, and we're doing certain things. We're paying a high number. We're reducing it a little bit,' Trump told reporters, without elaborating. 'It's good for everybody, but our farmers are going to be thrilled. Our manufacturers are going to be thrilled.'
Trump announced late Aug. 18 that he would pause implementation of the tariffs on Canadian goods for three days after the two sides signaled progress toward an agreement on tariffs. The two close allies, which did roughly $900 billion in trade in goods and services last year, have seen their relationship come under deep strain as Trump has ratcheted up trade pressure on Canada during his second term.
Industry Pressure on Uniform Rates
However, even as they work to fine tune the details, Trump administration officials are under pressure to avoid applying a reduced rate uniformly across steel and aluminum imports from Canada, some people familiar with the discussions said.
The Coalition for a Prosperous America, a manufacturing advocacy group that has supported tariffs, and other stakeholders have lobbied the Trump administration to combine any aluminum tariff reduction with so-called traceability requirements meant to better protect U.S. fabrication that makes up the bulk of the domestic aluminum industry.
At risk, they warn, are some 125,000 jobs in the U.S. tied to aluminum rolling, drawing and extruding.
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People Also Ask
What tariff rate is being proposed for Canadian steel and aluminum?
The tentative deal would lower tariffs on certain Canadian exports of steel and aluminum to 25%, down from the current 50% rate.
Are the tariff details finalized?
No. The details have yet to be finalized and are not expected to apply across the board; different rates could apply to some derivative products.
When did talks between U.S. and Canadian trade advisers continue?
Talks continued Aug. 19, less than 24 hours after President Trump paused planned 50% levies on billions of dollars of Canadian goods.
What did Trump say about U.S. concessions?
Trump said, 'We're paying a high number. We're reducing it a little bit,' adding it would be good for farmers and manufacturers.
How many U.S. jobs are at risk in aluminum fabrication?
Manufacturing groups warn some 125,000 jobs in the U.S. tied to aluminum rolling, drawing and extruding are at risk.
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