US and Canada Pursue Steel and Auto Tariff Relief

Trade negotiations between the United States and Canada are gaining momentum as Washington and Ottawa seek to reduce tariffs on steel and automotive imports. The discussions, reported on October 27, 2026, focus on easing economic tensions while South Africa faces possible restrictions on its preferential access to the American market.

According to Reuters, officials from both countries are discussing targeted exemptions from Section 232 duties, which currently impose tariffs of up to 50% on Canadian steel and 25% on motor vehicles.

U.S. Commerce Secretary Howard Lutnick and Canadian Minister Dominic LeBlanc have maintained regular contact as negotiations intensify ahead of upcoming U.S. midterm elections. The New York Post also reported that the White House considered the two countries close to reaching a tariff agreement.

Canadian Prime Minister Mark Carney acknowledged increased diplomatic activity between the neighboring countries while emphasizing that progress depends on Washington addressing Ottawa's concerns.

"slight intensification" in bilateral discussions was confirmed by Mark Carney, Canadian Prime Minister.

Carney also credited the movement in negotiations to changes in the American position, indicating that Canada considers its demands central to any potential agreement.

"To the extent any progress has been made, it's because the US is coming closer to our position," said Mark Carney, Canadian Prime Minister.

Canada previously promised a proportional response to American trade restrictions. As reported by Business Insider Africa in August, Carney had pledged that Ottawa would respond to American trade penalties "dollar for dollar".

Ottawa subsequently imposed retaliatory tariffs of up to 50% on approximately 700 American products, covering roughly $20 billion in annual imports.

Canadian Trade Minister Mélanie Joly explained that the government deliberately selected products from U.S. states politically supportive of President Donald Trump to increase the domestic political impact of the measures.

Joly also indicated that Canada had deliberately avoided immediately deploying its most severe economic countermeasures.

"a lot of good cards" were available to Canada, said Mélanie Joly, Canadian Trade Minister.

Meanwhile, South Africa faces a separate trade challenge as the Trump administration considers the country's continued participation in the African Growth and Opportunity Act (AGOA).

Although the U.S. Congress voted to extend South Africa's duty-free access through 2028, final authorization remains with President Donald Trump. Diplomatic disagreements involving land reform and discrimination allegations have contributed to uncertainty surrounding the decision.

South African President Cyril Ramaphosa addressed the situation in a national speech, explaining that congressional approval had not completed the process and that the executive branch retained the final decision.

"Congress has decided that we should be kept in AGOA. What now remains is the executive," said Cyril Ramaphosa, South African President.

Ramaphosa also acknowledged that South Africa would not be the first country removed from the trade arrangement if Washington ultimately withdrew its preferential access.

"if we ever have a choice, we are not the first and only country to be taken out of AGOA. And I believe we will not be the last," said Cyril Ramaphosa, South African President.

According to South Africa's national automobile manufacturing body Naamsa, approximately 86,000 direct manufacturing jobs and more than 125,000 total positions depend directly on the trade agreement.

Ramaphosa described the potential economic consequences of losing preferential access while urging citizens to remain prepared for the possibility.

"devastating" was how Ramaphosa characterized the potential loss of duty-free access to the American market.

The president also stressed the importance of preparing the country for a possible withdrawal without allowing the prospect to undermine public confidence.

"I need, as president, to prepare us if it ever happens. So we should not go out and jump off tall buildings and think that this is the end of the world," said Cyril Ramaphosa, South African President.