Canada: Trump Wants Steel, Aluminum, Energy Deal; Lutnick: Car Tariffs Staying

However, in what were meant to be off-the-record remarks that leaked to the press on Oct. 8, Commerce Secretary Howard Lutnick dismissed the possibility of removing 25% tariffs on Canadian cars and trucks.

According to attendees at the Toronto speech, Lutnick said the U.S. could continue buying parts from Canada, “but that’s about it.”

He also said that Canada should "come second," after the U.S., in autos.

President Donald Trump, in front of reporters a day earlier, said, "It’s a tough situation because we want to make our cars here. At the same time, we want Canada to do well, making cars. We’re working on formulas and I think we’ll get there."

The use of the word formulas raised the question of whether Canada could receive some sort of tariff rate quota, as the U.K. did.

LeBlanc told a reporter that they shouldn't assume that formulas meant quotas. "There can be all kinds of formulas that are discussed, in terms of investment, in terms of partnerships, in terms of joint ventures to develop certain industries together," he said. "Those are the kinds of conversations" that Canadian negotiators are having, he said.

LeBlanc also said he was more optimistic about the possibility of improving the situation for Canadian steel and aluminum after the talks. Both are subject to 50% tariffs under Section 232, even if they meet USMCA rules of origin.

"The conversation was more detailed than previous discussions," he said. In French, he said, "I'm very happy, I saw substantial progress today. I saw a willingness on the part of President Trump and his [Cabinet] secretaries ... to work as quickly as possible on priority sectors."

In a readout from the Prime Minister's office released Oct. 8, Canada's leader said his country's exports are treated more favorably than any other country, with 85% of the trade tariff-free.

"The leaders identified opportunities for material progress in trade in steel, aluminium, and energy, and directed their teams to conclude this work in the coming weeks," the release said.

Both in the Oval Office and in the press conference at the Canadian embassy, the political pressure from Canadians was clear. Canadian journalists asked Carney why the U.K. and the EU have gotten deals that lowered tariffs, but not Canada.

Trump interjected, "Because they’re not located right next to each other."

Carney acknowledged there are areas where Canada and the U.S. compete, but also noted that Canada is the largest foreign investor in the U.S., and said, "there are more areas where we are stronger together."

Trump said, "It's true."

LeBlanc pushed back on a question that said politicians had expected to get a break on steel and aluminum tariffs at this meeting. "People understandably want to see the results," he said, "and believe me, so do we."

He said that he and U.S. Trade Representative Jamieson Greer would continue to talk.

Sen. Jeanne Shaheen, D-N.H., issued a statement in response to the meeting that said: "I'm glad that President Trump is engaging with Prime Minister Carney, but I am deeply disappointed in the President's failure to de-escalate his destructive and unnecessary trade war. President Trump's tariffs on Canada have raised prices for working families at a time when costs are already out of control, and they're making it harder for our own manufacturers to stay competitive. As America faces mounting instability and security threats around the world, we need to deepen our ties with our closest allies like Canada, not damage them with self-defeating trade wars and childish rhetoric around annexation."

Trump joked again during the public part of the meeting that the U.S. would absorb Canada.