Trump says Canada and the US are 'very close' to a trade deal as talks restart

Trump told reporters Sunday the two countries have a concept of a very good deal. According to reports, US Commerce Secretary Howard Lutnick, whose last-minute demands helped sink the August talks, restarted contact about 10 days ago.

US tariffs at the centre of the talks

• Steel, aluminum, copper: up to 50 per cent
• Vehicles: 25 per cent
• Softwood lumber: an added 10 per cent
• Some furniture, cabinetry: 25 per cent

The talks centre on Section 232 tariffs, which Trump imposed on national-security grounds on steel, aluminum, copper, vehicles, lumber and some furniture.

Autos remain a sticking point: the US offered to cut tariffs to 15 per cent on cars and light trucks only, while Canada wants larger trucks made here included.

Formal talks could resume this week, two sources say, though Canadian negotiators remain sceptical that Trump will compromise.