U.S. to halve tariffs on Canadian steel and aluminum to 25%, reports say

The United States is poised to slash tariffs on certain Canadian steel and aluminum imports from 50% to 25% under a tentative trade deal currently being negotiated, according to multiple reports citing people familiar with the matter. The proposed reduction, which could be finalized ahead of an August 21 deadline, aims to ease trade tensions between the two nations while lowering levies that have strained bilateral commerce worth roughly $900 billion annually. Talks between U.S. and Canadian officials continued on August 19, with final terms still unresolved as negotiators debate exclusions, derivative products, and protections for U.S. aluminum manufacturers. The tentative agreement would not apply uniformly across all steel and aluminum imports; some derivative products could face different rates, the sources said. The move follows President Donald Trump’s decision on August 18 to pause the implementation of 50% tariffs on Canadian goods for three days, signaling progress in the negotiations. Trump acknowledged concessions during an August 19 press briefing, stating, ‘Got to give something, and we’re doing certain things. We’re paying a high number. We’re reducing it a little bit.’ He added that the adjustments would benefit American farmers and manufacturers. The proposed tariff reduction comes amid broader trade tensions between the U.S. and Canada, which have intensified during Trump’s second term. Last year, the U.S. imposed 50% tariffs on imported steel and aluminum under Section 232 of the Trade Expansion Act, a move that drew criticism from close U.S. trading partners. Canada, a top source of U.S. aluminum imports, has pushed for lower steel and automotive tariffs. While the U.S. lacks the domestic capacity to meet its aluminum demand, the tariff costs have largely been passed on to American buyers. Negotiators are under pressure to avoid applying the reduced rate uniformly, with some stakeholders advocating for traceability requirements to protect U.S. aluminum fabrication jobs. The Coalition for a Prosperous America, a manufacturing advocacy group, has lobbied for such measures, warning that 125,000 U.S. jobs in aluminum rolling, drawing, and extruding could be at risk. Canadian supplies currently account for about half of U.S. aluminum consumption. The White House, the U.S. Trade Representative’s office, and the office of Canadian Prime Minister Mark Carney did not immediately respond to requests for comment.