US and Canada are negotiating relief from US duties on Canadian steel and autos, according to six sources, in an effort to mend ties strained since trade talks collapsed in August.

The US and Canada are working towards an agreement to ease tariffs on Canadian steel and autos, reports Reuters. The two governments are seeking to repair relations that deteriorated after trade talks broke down in August.

The negotiations centre on tariffs imposed under Section 232 of US trade law, including up to 50% on steel and 25% on autos. One Canadian source said a deal could be reached before the US midterm elections on 3 November, but US sources said Washington wanted further concessions.

Earlier, US President Donald Trump signed an order on 23 October 2026 that removes 50% tariffs on some Canadian agricultural and forestry products.