The United States and Canada concluded two days of negotiations on Friday aimed at averting a 50% tariff on steel and aluminum imports, with discussions centered on a tariff-rate quota system that would impose a 25% levy on qualifying shipments while maintaining the higher rate for volumes exceeding an agreed threshold.
Under the proposed framework, Washington would have imposed the 50% tariff on approximately $20 billion of Canadian imports had no agreement been reached. The measures were originally scheduled to take effect on Wednesday but were delayed by a three-day extension granted by President Donald Trump. Negotiators worked against a midnight Friday deadline to finalize terms.
The potential tariffs stem from Section 232 of the Trade Expansion Act, which permits trade restrictions on national security grounds. The proposed levies target raw steel and aluminum as well as downstream products, with broader implications for the automotive sector. U.S. objectives include expanded access for American dairy products, wine, and spirits, while Canada seeks concessions on lumber and other exports.
Vice President JD Vance visited an Ohio steel plant on Friday to underscore the administration’s support for domestic manufacturing, coinciding with Cleveland-Cliffs Inc.’s announcement of a $1 billion investment. The company, listed on the NYSE under ticker CLF, operates in the steel and iron ore sectors.
President Trump told reporters that talks with Canada were progressing, stating he expected an outcome more favorable to the United States. The administration has not disclosed specific details of the proposed quotas or the volume thresholds under consideration.
