Canada, U.S. expected to resume talks on steel and aluminum export cap amid tariff dispute

Canadian and U.S. trade negotiators are expected to resume discussions on a proposal that would place a cap on Canadian steel and aluminum exports to the United States in exchange for reduced U.S. tariffs, according to sources familiar with the negotiations.

The proposal is being considered as both countries seek to resolve a trade dispute before Aug. 19, when U.S. President Donald Trump is scheduled to impose a new 50 per cent tariff on approximately $20 billion worth of Canadian steel and aluminum exports.

The two sides also discussed the proposal last October. Those talks were suspended after the Ontario government launched a tariff-opposition advertising campaign in the United States, prompting the Trump administration to halt negotiations.

According to sources, the United States has also presented roughly two dozen additional demands as part of broader trade negotiations. They include expanded access to Canada's dairy market, the removal of provincial restrictions on U.S. alcohol sales, and the repeal of the Online Streaming Act.

Canada–U.S. Trade Minister Dominic LeBlanc and Canada's chief negotiator, Janice Charette, are in Washington this week, where they are scheduled to meet with industry groups and U.S. senators to build support for ongoing negotiations with the Trump administration.