Nov 4, 2026
Canada-U.S. trade talks had been stalled since August. Now the American official who Canadian negotiators blame for derailing them is the one encouraging a restart.
U.S. Commerce Secretary Howard Lutnick has quietly led a fresh push for a deal. But his focus is narrow: the national security tariffs on steel, aluminum, lumber and autos.
What’s on the table in the revived trade talks?
Sources in both countries told CTV News that Lutnick had pushed to restart trade talks just over 10 days ago. He has centred them on Section 232 tariffs, which the U.S. justifies on the grounds of national security.
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According to the Trade Commissioner Service, the arm of Global Affairs Canada that supports Canadian exporters, these include tariffs of up to 50% on steel, aluminum and copper products (now charged on a product’s full value), and 25% on autos and trucks. Under Section 232, vehicles that qualify under the Canada-United States-Mexico Agreement pay the tariff only on their non-U.S. content. Softwood lumber faces a 10% tariff on top of existing anti-dumping and countervailing duties, and certain upholstered furniture, kitchen cabinets and vanities face 25%.
If formal negotiations resume, people familiar with the matter say U.S. Trade Representative Jamieson Greer could rejoin. Energy, including the Keystone XL pipeline and diesel exports, could also be added to the mix.
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Lutnick’s focus doesn’t include the 50% tariffs the U.S. placed on a wide range of Canadian goods on Aug. 22 under Section 338 of the Tariff Act of 1930, from dairy and alcohol to furniture, electronics, wood products and clothing. Sources say a broader round could cover issues beyond Section 232, but they haven’t said whether it would include these tariffs.
Sources say the August talks offer a preview of a possible deal. Before they collapsed, Canada had reportedly secured three things: lower tariffs on steel shipments below a set quota, a cut to aluminum tariffs and an agreement for provinces to put U.S. alcohol back on store shelves.
Autos were the sticking point. The U.S. offered to cut its tariff on cars and light trucks from 25% to 15%, but Canada wanted larger Canadian-built trucks included. There has been some movement on autos over the past 10 days, though they expect it to remain one of the hardest issues to resolve.
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Why shouldn’t Canadians count on tariff relief yet?
President Donald Trump told reporters in Dubuque, Iowa, on Nov. 1 that the two countries have the “concept of a very good deal.” Sources close to Canada’s negotiators remain skeptical he’ll compromise, but note that Prime Minister Mark Carney believes Trump is serious about wanting a deal. Carney has also said he can’t guarantee Trump will respect anything they sign.
Meanwhile, the costs are already landing. On Sept. 8, Canada responded to the Section 338 tariffs dollar for dollar with counter-tariffs of 15%, 25% or 50% on $27.6 billion of U.S. imports. The rates apply to a list of U.S.-origin products published by the Department of Finance Canada, which is responsible for tariff policy. The list includes certain steel and dairy products, appliances, furniture, clothing and electronics.
Who’s most affected by the trade talks?
The negotiations matter most if you work in an industry targeted by the tariffs, plan to purchase a big-ticket item of U.S. origin soon or carry variable-rate debt.
Workers in steel, aluminum, lumber and autos
These are the sectors directly on the negotiating table, and a broader deal could ease pressure on employers.
Households planning big purchases
Counter-tariffs may be built into the price of U.S.-made appliances, furniture and other goods. A deal could eventually roll some back, but there’s no timeline. Checking the country of origin and comparing Canadian-made or other non-U.S. options can save money in the meantime.
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Writer and editor based in Toronto with experience in personal finance, insurance, arts and culture and branded content.
