--- title: "US Could Cut Canadian Auto Tariffs to 15%, Aluminum and Steel to 25% Under Proposed Trade Deal: Report" type: "News" locale: "en" url: "https://longbridge.com/en/news/296442532.md" description: "The U.S. and Canada are reportedly close to a trade deal that would reduce auto tariffs from 25% to 15% and steel/aluminum tariffs from 50% to 25%. The effective auto tariff rate may be lower due to volume-based cuts for U.S.-sourced content. Negotiations must conclude before Saturday, or $20 billion in Canadian goods will face new tariffs. Key industry figures, including Ford's CEO and Tesla's Elon Musk, have commented on domestic content and USMCA reforms." datetime: "2026-08-20T05:43:48.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296442532.md) - [en](https://longbridge.com/en/news/296442532.md) - [zh-HK](https://longbridge.com/zh-HK/news/296442532.md) --- # US Could Cut Canadian Auto Tariffs to 15%, Aluminum and Steel to 25% Under Proposed Trade Deal: Report The U.S. is reportedly planning to cut tariffs on Canadian auto imports into the country to 15%, with Steel and Aluminum tariffs being reduced to 25% as the deadline to reach an agreement looms. ## 15% Auto Tariffs Could Be Lower in Effect According to a report by Reuters on Wednesday, officials from the U.S. and Canada were close to reaching an agreement over the tariffs, with the 25% tariff on auto imports being reduced by 10% to 15%, according to anonymous sources cited by the news agency. **Read Also: Ferrari's First Luce EV Production Unit Sold for $40 Million at Sotheby's Auction, More Than 36 Times Its Estimate** However, the 15% tariff figure could actually be lower, as the tariff would come before cuts depending on the volume of U.S.-sourced content in vehicles, bringing the effective rate down to a lower figure, the report said. Tariffs on Steel and Aluminum could also be reduced to 25% from the earlier 50% tariff, but it would be subject to a certain volume of imports, likely to be at 4 million metric tons, the report said. _The White House and the Office of the Prime Minister of Canada did not immediately respond to Benzinga‘s request for comment._ The U.S. and Canada would need to reach an agreement before Saturday, 12:01 a.m. EDT, after which tariffs on $20 billion worth of Canadian goods would take effect. Notably, Trump had paused 50% Canadian tariffs for three days as negotiations continued. ## Negotiations on Tariffs Earlier reports suggested that talks were progressing between trade officials from the U.S. and Canada, with the U.S. earlier seeking a reduction in tariffs on American content, while Canadian officials had pushed for a reduction in parts sourced from North America as a whole. On the other hand, Trump’s Commerce Secretary **Howard Lutnick** backed the White House’s tariffs, saying that the move was bringing manufacturing jobs in the U.S. auto sector back into the country from overseas. He also hailed domestic endeavors undertaken by **Ford Motor Co.** (NYSE:F) and **Toyota Motor Corp** (NYSE:TM). ## Elon Musk Touts 84% American Content **Tesla Inc.** (NASDAQ:TSLA) CEO **Elon Musk** said that the automaker was the most "made in America" company, touting Tesla vehicles boasting 84% American content. Musk also reaffirmed that Tesla sourced its parts from domestic sources instead of overseas. Meanwhile, Ford CEO **Jim Farley** had backed an overhaul of the U.S.-Mexico-Canada Agreement (USMCA), calling the agreement a crucial element of the automaker’s business strategy. **Read Also: Institutional Investors Added Over 70 Million RIVN Shares as AMZN, UBER Remain Key Holders** _Check out more of Benzinga’s Future Of Mobility coverage by_ following this link. _Photo courtesy: Shutterstock_ ### Related Stocks - [TSL.US](https://longbridge.com/en/quote/TSL.US.md) - [F.US](https://longbridge.com/en/quote/F.US.md) - [F-C.US](https://longbridge.com/en/quote/F-C.US.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [F-D.US](https://longbridge.com/en/quote/F-D.US.md) - [TSDD.US](https://longbridge.com/en/quote/TSDD.US.md) - [TSLR.US](https://longbridge.com/en/quote/TSLR.US.md) - [TSLG.US](https://longbridge.com/en/quote/TSLG.US.md) - [07766.HK](https://longbridge.com/en/quote/07766.HK.md) - [F-B.US](https://longbridge.com/en/quote/F-B.US.md) - [TSLS.US](https://longbridge.com/en/quote/TSLS.US.md) - [FRDU.US](https://longbridge.com/en/quote/FRDU.US.md) - [TSLQ.US](https://longbridge.com/en/quote/TSLQ.US.md) - [FRDD.US](https://longbridge.com/en/quote/FRDD.US.md) - [TSLL.US](https://longbridge.com/en/quote/TSLL.US.md) - [TSLZ.US](https://longbridge.com/en/quote/TSLZ.US.md) - [TSLT.US](https://longbridge.com/en/quote/TSLT.US.md) - [TESL.US](https://longbridge.com/en/quote/TESL.US.md) - [TSLI.US](https://longbridge.com/en/quote/TSLI.US.md) - [TSLO.US](https://longbridge.com/en/quote/TSLO.US.md) - [TSLW.US](https://longbridge.com/en/quote/TSLW.US.md) - [TSLY.US](https://longbridge.com/en/quote/TSLY.US.md) - [TSYY.US](https://longbridge.com/en/quote/TSYY.US.md) - [TYYY.US](https://longbridge.com/en/quote/TYYY.US.md) - [CRSH.US](https://longbridge.com/en/quote/CRSH.US.md) - [TSLP.US](https://longbridge.com/en/quote/TSLP.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [09366.HK](https://longbridge.com/en/quote/09366.HK.md) - [TM.US](https://longbridge.com/en/quote/TM.US.md) - [7203.JP](https://longbridge.com/en/quote/7203.JP.md) - [RIVN.US](https://longbridge.com/en/quote/RIVN.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [UBER.US](https://longbridge.com/en/quote/UBER.US.md) - [TOYOF.US](https://longbridge.com/en/quote/TOYOF.US.md) ## Related News & Research - [Marshall Financial Group LLC Boosts Holdings in Tesla, Inc. $TSLA](https://longbridge.com/en/news/296461028.md) - [EXCLUSIVE-Detroit automakers fear North American trade deal revamp could cost them billions](https://longbridge.com/en/news/295824240.md) - [Tesla Is Finally Getting Ready to Demo a Flying Roadster. 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