Steel imports from Canada could be subject to a quota system under current considerations, with tariffs on volumes that exceed the quota set at a higher rate, according to people familiar with the negotiations. Aluminium is not currently expected to face a quota.
The deal’s interaction with the existing CUSMA Agreement also remains unresolved. Under the agreement automakers receive deductions from tariffs based on the US content of their vehicles, which effectively lowers the net tariff on compliant vehicles below the headline rate. How any new tariff framework reconciles with those existing provisions is still being worked out.
The potential revival of the Keystone XL pipeline, floated by Trump as part of the broader discussions, adds another dimension to the energy investment outlook. Separately, Trump said Canadian tariffs on US agricultural goods would be eliminated under the agreement, a concession that could affect advisors with clients in agribusiness or rural investment trusts.
Provinces still need to move
Alongside the federal negotiations, Carney has asked provincial and territorial leaders to restore American alcohol to store shelves; a retaliatory measure several provinces adopted earlier this year.
Nova Scotia Premier Tim Houston signalled openness, noting that “whether Canadians will buy it is another discussion.” Quebec Premier Christine Fréchette was more guarded, saying she needed “more information to decide if it’s good for Quebec.”
