Key Facts
With the latest round of tariff measures by US President Donald Trump set to take effect on the 19th of this month, the two sides are again discussing the steel and aluminum export quota plan proposed last year, hoping to limit Canada's export volumes to the US in exchange for a reduction in the current steel and aluminum tariffs of up to 50%. According to six people familiar with the talks, one of the key topics is reviving last year's tariff-rate quota proposal.
Policy and Trade
Under the concept, Canadian steel and aluminum exports to the US would have annual quotas; exports within quota would enjoy lower tariffs, while volumes above quota would face high tariffs again. Two US industry insiders said the two sides are still negotiating quota volumes and the tariff rate for in-quota steel. The Globe and Mail reported last year that the proposal at the time suggested setting quotas based on Canada's past export volumes, with in-quota steel tariffs of 10%–15% and out-of-quota tariffs of 25%–50%.