US-Canada trade negotiations have intensified in late October 2026 amid ongoing 50% Section 338 tariffs on select Canadian goods and Canadian countermeasures, following the August collapse of broader talks. Recent diplomatic engagement, including a presidential call and regular discussions between US Commerce Secretary Howard Lutnick and Canadian officials, centers on easing Section 232 duties on steel and autos, with partial US tariff relief on items like plywood and machinery taking effect October 30 ahead of US midterms. White House statements indicate momentum toward a limited agreement, while Canadian Prime Minister Mark Carney has described only slight progress and emphasized mutually beneficial terms on autos, dairy, and alcohol access. The November 3 midterms and potential January 2027 tariff escalations represent key near-term catalysts that could shape further bilateral concessions or delays.