Canada, U.S. holding ‘technical’ talks on sectoral tariffs, Minister says

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By Brian Platt

(Bloomberg) — Canada and the U.S. agreed to hold technical talks on sectoral tariffs after officials met with Commerce Secretary Howard Lutnick last week, said Canadian cabinet minister Dominic LeBlanc.

LeBlanc gave few details, but said the two sides decided to “pursue technical discussions” regarding “different sectors where Canada believes we can come to an agreement that would be in the economic interest of both countries.”

Canada is facing punishing American tariffs on its steel, aluminum, auto and lumber exports, but LeBlanc declined to say whether quota limits in those sectors are part of the negotiations. 

Still, he said the discussions continued this week in Washington, led by Canada’s top civil servant, Michael Sabia.

The talks are focused on reaching “common understandings” about options that may ultimately form “a series of small deals that cumulatively would put us in a better position than right now,” said LeBlanc, who is the minister responsible for U.S. trade and led the meeting with Lutnick last week. 

On Wednesday, Carney told reporters he had a “very constructive” conversation with U.S. President Donald Trump earlier in the week and believes they can reach agreements on some tariff-affected industries. “Don’t expect immediate white smoke on one of these strategic sectors, but that’s the type of conversation that we’re having,” Carney said.

Industry Minister Melanie Joly told reporters that more support for these sectors is coming from the government, and pointed to the need for steel mills to pivot toward supplying products for Canada’s domestic market. She cited housing construction, port expansions, railroads and shipbuilding projects as examples.

Steel mills are “the crown jewels of our manufacturing sector,” Joly said, adding that Canadian national security includes having steel manufactured in the country.


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