Canada, U.S. Holding ‘Technical’ Talks on Sectoral Tariffs, Minister Says
By [Your Name], September 5, 2025
Washington, DC – Canada and the United States have initiated “technical” talks aimed at addressing U.S.-imposed sectoral tariffs on Canadian exports, including steel, aluminum, autos, and lumber, according to Canada’s Minister of Intergovernmental Affairs, Infrastructure, and Communities, Dominic LeBlanc. The announcement follows a series of high-level meetings in Washington, including discussions between LeBlanc and U.S. Commerce Secretary Howard Lutnick last week, as both nations navigate escalating trade tensions.
LeBlanc, the point person for Canada-U.S. trade relations, provided few specifics but emphasized that the talks focus on finding “common understandings” to mitigate the impact of U.S. tariffs, which were raised to 35% on non-CUSMA-compliant Canadian goods in August 2025. “We’re pursuing technical discussions on different sectors where Canada believes we can come to agreements that would be in the economic interest of both countries,” LeBlanc said, noting that the negotiations, led by Canada’s top civil servant Michael Sabia, continued in Washington this week. The goal, he added, is to secure “a series of small deals” to improve Canada’s position.
The talks come in the wake of Canada’s decision to lift some retaliatory tariffs on U.S. goods covered under the Canada-United States-Mexico Agreement (CUSMA), a move announced by Prime Minister Mark Carney on August 22, 2025, to align with U.S. tariff exemptions. Despite this concession, Canada maintains counter-tariffs on U.S. steel, aluminum, and automobiles, which LeBlanc described as a “significant point of contention” in prior negotiations. U.S. President Donald Trump, who has justified the tariffs citing issues like fentanyl smuggling, called Canada’s tariff reductions “nice” but has shown little willingness to ease sectoral levies.
Prime Minister Carney, speaking to reporters, expressed cautious optimism about the ongoing discussions, noting a “very constructive” conversation with Trump earlier this week. “Don’t expect immediate white smoke on one of these strategic sectors, but that’s the type of conversation we’re having,” Carney said, emphasizing a focus on steel, aluminum, autos, and softwood lumber. Industry Minister Melanie Joly highlighted the need to bolster domestic steel production for housing, port expansions, railroads, and shipbuilding, underscoring steel’s role as a “crown jewel” of Canadian manufacturing and national security.
The U.S. tariffs, which include a 50% rate on Canadian steel and aluminum, have hit Canadian industries hard, with manufacturing losing 58,100 jobs over the past seven months. Despite the protection offered by CUSMA, which covers up to 95% of Canadian exports, non-compliant goods face significant barriers. LeBlanc, accompanied by Carney’s chief of staff Marc-André Blanchard and Canada’s U.S. envoy Kirsten Hillman, has been pressing for exemptions, though Trump’s August 1, 2025, deadline for a broader trade deal passed without an agreement, prompting the tariff hike.
International trade lawyer Martha Harrison emphasized that reducing or removing sectoral tariffs remains Canada’s top priority, warning that failure to secure relief could further strain industries already reeling from trade disruptions. Meanwhile, posts on X reflect growing frustration, with some users labeling Canada’s concessions as “capitulation” and criticizing the lack of reciprocal U.S. action.
As technical talks progress, Canada faces a delicate balancing act: protecting its economic interests while navigating a U.S. administration intent on maintaining high tariffs. The outcome of these discussions could shape cross-border trade for years, with both sides seeking a “landing zone” for mutually beneficial agreements.
Sources: Canadian Mortgage Trends, Global News, CBC News, Politico, CTV News, Mining Weekly, The Straits Times, EconoTimes