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7% car tariff floor was on offer, Greer says, contesting Carney's account of U.S. trade proposals

A potential 7% floor on Canadian automobile tariffs was part of the U.S. offer in trade talks, Greer said, directly disputing Carney's public characterization that American proposals were inadequate. The U.S. package, as Greer described…

By Warren Ashby·Aug 22, 2026·1 min read·macro

Key takeaways

  • U.S. Trade Representative Greer said a potential 7% floor on Canadian automobile tariffs was part of the U.S. offer in trade talks.
  • Greer's account directly disputes Carney's public characterization that the U.S. proposals were inadequate.
  • The U.S. package described by Greer covered four sectors: autos, softwood lumber, steel, and dairy and wine.
  • Greer said the U.S. offered to eliminate the 10% softwood lumber tariff entirely, cut steel duties on most Canadian product to 25%, and potentially suspend a 50% tariff on dairy and wine.
  • Neither official has publicly addressed whether those terms remain available or what either side will propose next.

A potential 7% floor on Canadian automobile tariffs was part of the U.S. offer in trade talks, Greer said, directly disputing Carney's public characterization that American proposals were inadequate. The U.S. package, as Greer described it, spanned four sectors: autos, softwood lumber, steel, and dairy and wine.

On softwood lumber, the U.S. had offered to eliminate the 10% tariff entirely. Steel duties, on the majority of Canadian product, would have been reduced to 25%. The U.S. proposed a potential suspension of a 50% tariff on dairy and wine. And a deal, Greer said, could have brought automotive tariffs as low as 7%.

The dispute turns on adequacy. Carney characterized the U.S. offers as falling short of what an agreement would require. Greer's counter attaches specific rates to each sector: full lumber relief, a 25% ceiling on most steel, a suspended dairy-and-wine tariff, and a 7% automotive floor. Those are materially different claims about the same set of talks.

What the exchange does not settle is whether those terms remain available. Neither official has addressed publicly what either side is prepared to put forward next.

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Frequently asked

What tariff rates did Greer say the U.S. offered Canada?

Greer said the offer included a potential 7% floor on automobile tariffs, full elimination of the 10% softwood lumber tariff, a reduction of steel duties on most Canadian product to 25%, and a potential suspension of a 50% tariff on dairy and wine.

Why do Greer's and Carney's accounts of the talks conflict?

Carney characterized the U.S. offers as falling short of what an agreement would require, while Greer countered by attaching specific rates to each sector, making materially different claims about the same talks.

Which sectors were covered by the U.S. trade proposal?

The U.S. package spanned four sectors: autos, softwood lumber, steel, and dairy and wine.

Is it clear whether these tariff terms are still on the table?

No; the article states neither official has publicly addressed whether the terms remain available or what either side is prepared to propose next.