# US-Canada trade dispute and negotiations > Live situation record from CLSTR: https://clstr.news/situations/us-canada-trade-dispute-and-negotiations > Updated: 2026-10-25T20:25:30.000Z. Sources: 48. Developments: 2. Trade relations between Canada and the United States have undergone significant tension following the imposition of 50% tariffs by the Trump administration on approximately $28 billion CAD worth of products. This dispute prompted reciprocal measures from Ottawa and led many Canadians to express a preference for prioritizing trade strategies with the European Union over the United States. Recent developments indicate that negotiations are gaining momentum after a period of stalemate. U.S. President Donald Trump stated during a campaign rally in Michigan that a trade agreement will be reached “pretty soon,” while defending the tariffs by alleging Canada has been “ripping off” the United States for years. White House economic adviser Kevin Hassett noted that discussions are “gathering steam,” and Commerce Secretary Howard Lutnick has been in contact with Canadian counterparts. The dispute escalated in August following the breakdown of formal negotiations, resulting in a $20 billion surcharge on Canadian products including cement, wine, and hockey sticks, which prompted equivalent duties on American imports. While the White House has begun easing certain 50% tariffs on specific goods like plywood and certain machinery following requests from Senator Susan Collins, a final resolution remains uncertain. Negotiations have recently seen a “slight intensification,” with discussions expected to focus on easing Section 232 tariffs, specifically targeting Canadian steel and automobiles. Canadian Prime Minister Mark Carney noted this shift, suggesting progress is due to Washington moving closer to Canada’s position, while maintaining that any deal must respect Canada’s national interests and sovereignty. However, some Canadian sources indicate that a deal might not be finalized before the U.S. midterm elections on November 3. ## Claims - Donald Trump predicts a trade agreement with Canada will be reached soon. (corroborated by 16 sources) - The White House modified the list of Canadian products subject to 50% tariffs following a request from Senator Susan Collins. (corroborated by 12 sources) - The US imposed tariffs on approximately $20 billion worth of Canadian goods. (corroborated by 11 sources) - Canada responded to US tariffs by imposing duties on an equivalent amount of American imports. (corroborated by 11 sources) - Commerce Secretary Howard Lutnick has been communicating with Canadian officials throughout the week. (corroborated by 11 sources) - Prime Minister Mark Carney stated Canada is ready to negotiate if the United States acts in good faith. (corroborated by 10 sources) - Kevin Hassett states that US-Canada trade negotiations are gaining momentum. (corroborated by 8 sources) - Negotiations are focusing on easing US tariffs on Canadian steel and automobiles. (corroborated by 6 sources) - The US economy is experiencing annual growth of 3% to 4%. (corroborated by 3 sources) ## Timeline ### 2026-10-25: US and Canada negotiate to ease steel and automobile tariffs The US and Canada are negotiating to reduce Section 232 tariffs on steel and autos following a period of intense trade tensions and retaliatory duties. 48 sources. https://clstr.news/cluster/us-and-canada-near-resolution-of-trade-standoff ### 2026-10-12: Canadians prioritize EU over US for trade strategy A new poll shows Canadians prioritize the EU over the US as their primary trade partner for the next five years, amid escalating trade tensions and tariffs with the United States. 4 sources. https://clstr.news/cluster/canadians-prioritize-eu-over-us-for-trade-strategy --- Cite as: US-Canada trade dispute and negotiations. CLSTR, https://clstr.news/situations/us-canada-trade-dispute-and-negotiations