Canada reports limited progress in trade talks with US

By Promit Mukherjee and David Shepardson

OTTAWA, Oct 28 (Reuters) – There has been limited progress in trade talks with the United States to ease US tariffs on Canadian steel and autos, a Canadian government official with knowledge of the discussions said on Wednesday.

US President Donald Trump widened a trade rift by imposing 50% tariffs on a wide range of imports from Canada in August, accusing the US  neighbor to the north of discriminatory treatment of American goods. Canada responded with retaliatory tariffs.

Reuters reported on Monday that the two countries were working on a trade deal. Talks on a broader agreement stalled in August when Canada walked away from the negotiating table. 

“While discussions have continued, there has been limited progress,” the Canadian official told Reuters, speaking on condition of anonymity.

Prime Minister Mark Carney, who on Monday said there had been “a slight intensification” in talks, reiterated on Wednesday that Canada is ready to sign an agreement that is in the interests of both nations.

“If those deals present themselves, we will pursue them, but we’re not at that position right now,” Carney told reporters.

A US government official said on Wednesday there were significant ongoing talks, including between US Commerce Secretary Howard Lutnick and Dominic LeBlanc, Canada’s minister responsible for trade with the United States.

The White House said the Office of the US Trade Representative and the Commerce Department are continuing to work together on key issues involving trade with Canada, and that both Lutnick and US Trade Representative Jamieson Greer have had discussions with their Canadian counterparts in recent days.

Trump’s Republican Party is fighting to retain control of the US Congress in the November 3 midterm elections. Tariffs on Canadian imports have become a political liability for the US president, with Republican candidates in border states calling for an end to the trade war with Canada.

Some experts have said the Trump administration may be less willing to make trade concessions to Canada after the midterms.

The latest talks have focused on tariffs imposed under Section 232 of US trade law, including up to a 50% tariff on Canadian steel and a 25% tariff on autos. The Commerce Department, which administers the Section 232 tariffs, did not immediately respond to a request for comment.

Trump on Sunday said the trade dispute would be resolved “soon,” without providing specifics.

Trump signed an order last week to ​remove 50% tariffs on some Canadian agricultural and forestry products in a move that could benefit companies from Maine, where incumbent Republican Senator Susan Collins is locked in a tight reelection race. Trump added a number of Canadian products to the 50% tariff list to offset the tariff relief provided ⁠in his order.

(Reporting by Promit Mukherjee, David Shepardson and David Ljunggren; Writing by Caroline StaufferEditing by Tomasz Janowski and Will Dunham)