Proposed Canada-U.S. trade deal would lock in 15% auto tariffs, sources say

By Adrian Morrow, Marieke Walsh & Bill Curry
The Globe and Mail
August 21, 2026
Category: Business & Politics
Region: Canada, United States

The prospective trade deal being negotiated in Washington this week would lower US President Trump’s tariffs on Canadian autos from 25% to 15% and preserve an existing exemption for the value of American content. …As Canada rushed to finalize the pact, Prime Minister Carney’s concessions drew criticism. …Six sources familiar with the negotiations said both auto and forestry tariffs, imposed by Mr. Trump last year using Section 232, had been major sticking points. …With forestry, Canada had asked for relief from the Section 232 sectoral portion of tariffs on lumber and wood products, while the US wanted the sector excluded entirely from the deal. …Given forestry’s importance to his province and his outspokenness, along with Mr. Kinew and Mr. Ford, about the importance of the alcohol ban, Mr. Eby’s cooperation will be crucial if Mr. Carney hopes to fulfill that U.S. demand. [to access the full story a Globe & Mail subscription is required]

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