US To Remove Tariffs On Canadian Metals, Mexico Deal Imminent
The United States and Canada on Friday announced a deal to remove tariffs on Canadian steel and aluminum in exchange for new curbs to keep dumped metals from China and other countries out of the United States, paving the way for a similar pact with Mexico.
The quota-free deal will eliminate the U.S. metals tariffs within 48 hours as well as Canada’s retaliatory tariffs on some $12 billion worth of U.S. products, including pork, beef and bourbon.
The 25% tariff on steel and 10% tariff on aluminum from Canada and Mexico were a major hurdle to ratification of the new trilateral trade deal to replace the 25-year-old North American Free Trade Agreement.
The deal announced on Friday leaves room for the reimposition of tariffs if imports of steel or aluminum “surge meaningfully beyond historic volumes” over a period of time, according to the joint statement. But any retaliation for such action would be limited to the steel and aluminum sectors.
