Sources say that the US-Canada trade agreement will reduce auto tariffs to 15% and halve tariffs on steel and aluminum.
August 23, 2026
A person familiar with the negotiations said that the still-under-construction US-Canada trade deal is expected to reduce President Donald Trump's tariffs on Canadian-made cars and trucks from 25% to 15%, and halve Canada's tariffs on steel and aluminum to 25%.
The reduction in steel tariffs is expected to come with quota arrangements, but the specific details have not been announced. The source told Reuters that the 15% auto tariff rate is calculated before deducting the value of US-made components, which will significantly lower the actual rate.
The agreement reached on Wednesday avoided a 50% new tariff on Peruvian goods imposed by the United States. It is expected that the two sides will continue negotiations before the new deadline of 12:01 a.m. Eastern Time on Saturday (04:01 GMT) in the United States, and the details of the agreement may change.
