US, Canada near steel, aluminium trade deal ahead of APEC summit

Canada may be close to a trade deal with the U.S. on steel, aluminium, and energy, sources told The Globe and Mail, potentially to be signed by Prime Minister Mark Carney and President Donald Trump at this month’s APEC summit.

Such a deal would provide much-needed relief for Canada’s metals sector, which has been heavily affected by U.S. tariffs.

It would also ease pressure on Carney, who has faced criticism for his inability to reach an agreement over the summer despite campaigning on his economic management during a period of rising U.S. protectionism.

However, sources cautioned that Washington is not yet prepared to make any concessions on automobiles or softwood lumber, two of Canada’s key exports.

The talks, which have involved top officials from both countries and input from industry stakeholders, have been led by Canada’s Minister responsible for trade, Dominic LeBlanc, Privy Council Clerk Michael Sabia, and Canadian Ambassador Kirsten Hillman. On the U.S. side, discussions have involved Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.

“The door is open” for further discussions before Trump and his trade advisers travel to Malaysia, Japan, and the APEC summit in South Korea, according to sources. “Minister LeBlanc continues to engage with senior U.S. officials, as working towards an agreement with the United States is his top priority,” his press secretary, Gabriel Brunet, told The Globe on Monday.

Significant progress has reportedly been made in Washington on steel and aluminium, though details remain scarce. Canada may have to accept quotas in exchange for lower tariffs, while Ottawa continues to resist tariffs or quotas on aluminium. Talks have also touched on the potential revival of the Keystone XL pipeline from Alberta to Texas, which was cancelled under former U.S. President Joe Biden.

Critical minerals, another potential point of negotiation, are reportedly not part of these discussions. Sources said additional talks will be necessary before a deal can be finalised, and a meeting between Carney and Trump at APEC could prove decisive.

The summit in South Korea begins on October 29, and both leaders are also expected to meet with Chinese President Xi Jinping. Carney is likely to raise China’s ban on Canadian canola in retaliation for Ottawa’s restrictions on Chinese-made electric vehicles.

Since Trump hosted Carney at the White House on October 7, talks have gained momentum, with Canada’s negotiation team instructed to finalise the finer details of a potential agreement.

Carney has faced pressure from unions, corporate groups, and provincial leaders, including Ontario Premier Doug Ford, to retaliate against U.S. tariffs on steel, aluminium, automobiles, and lumber. He has insisted, however: “There are times to hit back and times to talk and right now is the time to talk.”

He is also being urged by China and the premiers of Saskatchewan and Manitoba to lift 100-per-cent tariffs on Chinese electric-vehicle imports in exchange for Beijing removing its ban on Canadian canola.

By Aghakazim Guliyev