Canadian negotiators are looking at accepting a lower level of tariffs on the sectors subject to the Section 232 levies in exchange for concessions, reports Globe and Mail citing sources

Concessions include: Provinces lifting their US alcohol bans and Ottawa dropping its counter tariffs on autos. The level of tariffs that would apply to autos and lumber remain sticking points, according to sources with knowledge of the talks. The US is holding firm to its position on autos, leaving one of the toughest issues to crack for the final dash to a deal. Sources were divided about possibility of the two countries reaching a deal by tonight. Some were cautiously optimistic, some believe they are still far apart. Some on Canadian side believed a delay to Section 338 tariffs and more talks is the most likely outcome. Those briefed on the US side, were skeptical Canada would get anything more than a short extension.