Canadian negotiators are looking at accepting a lower level of tariffs on the sectors subject to the Section 232 levies in exchange for concessions, reports Globe and Mail citing sources
- Concessions include: Provinces lifting their US alcohol bans and Ottawa dropping its counter tariffs on autos.
- The level of tariffs that would apply to autos and lumber remain sticking points, according to sources with knowledge of the talks.
- The US is holding firm to its position on autos, leaving one of the toughest issues to crack for the final dash to a deal.
- Sources were divided about possibility of the two countries reaching a deal by tonight. Some were cautiously optimistic, some believe they are still far apart.
- Some on Canadian side believed a delay to Section 338 tariffs and more talks.
Section 232 talks have followed a familiar shape across past rounds: a quota or lower in-quota rate offered in exchange for the target country's own retaliatory measures being unwound, with autos consistently the last file settled because it carries the largest domestic employment weight on both sides. The structure described here, Canadian provincial alcohol bans and counter-tariffs traded against softer US levies, mirrors that pattern, and the reported sticking points on autos and lumber are the same ones that have historically held up conclusions until the final sessions. Sourced reports of this kind late in a negotiation are often themselves part of the process, signalling flexibility or testing domestic reaction, and divided sourcing on timing usually reflects genuine uncertainty rather than positioning. The channels that matter are sector-specific: Canadian auto and lumber producers on one side, US steel and aluminum users on the other, with the loonie sensitive to whether the counter-tariff unwind precedes or follows any US concession. The tells worth noting are whether a delay to the threatened Section 338 measures is announced, which in past episodes has been the standard bridge when principals are close but unready, and whether either government briefs out a framework before detail. As sourced reporting rather than an official announcement, the signal is directional and reversible.