White House to Lift Steel, Aluminum Tariffs on Canada, Mexico

May 17, 2019 by Dan McCue

President Donald Trump revealed Friday that his administration has reached an agreement with Canada and Mexico to lift tariffs on steel and aluminum, ending a standoff that threatened to derail ratification of the president’s new North American trade agreement.

Speaking before the National Association of Retailers in Washington, D.C. Friday morning, the president said, “I’m pleased to announce we’ve just reached agreement with Canada and Mexico. We’ll be selling our product into those countries without the imposition of tariffs.”

He went on to say the deal “is going to be a fantastic deal for our country.”

“Hopefully Congress will approve the USMCA quickly and then the great farmers, and manufacturers and steel plants will make our economy even more successful than it already is, if that’s possible,” the president said.

The USMCA is the United States Mexico Canada trade agreement that Trump wants to replace the two-decade old NAFTA agreement.

In a joint statement Friday afternoon, the Canadian government said that the two countries had reached an agreement for American tariffs to be lifted on Canadian steel and aluminum imports by Sunday, and that Canada would lift retaliatory tariffs at the same time.

Instead of tariffs, the nations would set up a system for monitoring and enforcement in case of import “surges.”

“In the event that imports of aluminum or steel products surge meaningfully beyond historic volumes of trade over a period of time, with consideration of market share, the importing country may request consultations with the exporting country,” the statement says.

“After such consultations, the importing party may impose duties of 25 percent for steel and 10 percent for aluminum in respect to the individual product(s) where the surge took place,” the statement continues. “If the importing party takes such action, the exporting country agrees to retaliate only in the affected sector.”

Agriculture and business groups had been pushing for the lifting of the steel and aluminum tariffs for months, arguing that retaliatory measures Canada and Mexico imposed on their products were causing unnecessary pain for farmers, ranchers and small businesses in the U.S.

The decision to ease the 25 percent tariffs on steel and 10 percent tariffs on aluminum comes on the heels of the White House announcing a six-month delay in determining whether to impose levies on foreign automobiles.

In The News

Health

Voting

Trade

Tai Dedicates First Speech as USTR to Greening of U.S. Trade Policy
Trade
Tai Dedicates First Speech as USTR to Greening of U.S. Trade Policy
April 19, 2021
by Kate Michael

WASHINGTON — On March 17, 2021, Ambassador Katherine Tai was confirmed as U.S Trade Representative by unanimous vote in the Senate. Just a month later, in her first speech as USTR, Tai explained how the benefits of global trade could work as a powerful incentive for... Read More

Defense Department Seeks Comments on Supply Chain Risks for Critical Materials
Defense
Defense Department Seeks Comments on Supply Chain Risks for Critical Materials
April 15, 2021
by TWN Staff

WASHINGTON - The Defense Department is seeking comments on risks to the supply chain for strategic and critical materials. In February, President Joe Biden signed an executive order directing the Defense Department and three other federal agencies to closely examine America’s supply chains in four critical... Read More

U.S. Trade Deficit Hits Record High in February
Trade
U.S. Trade Deficit Hits Record High in February
April 7, 2021
by TWN Staff

WASHINGTON - The U.S. trade deficit surged to a record high in February as the nation’s economic activity rebounded more quickly than that of other nations carefully shake off the economic hardships associated with the coronavirus pandemic. The trade deficit jumped 4.8% to a record $71.1... Read More

Goldmine of New Resources for Railroads
Transportation
Goldmine of New Resources for Railroads
April 5, 2021
by Tom Ramstack

WASHINGTON -- Virginia’s plan for a $3.7 billion passenger rail expansion was revolutionary on Tuesday when the governor announced it but later in the week looked like the tip of the iceberg. The next day, President Joe Biden presented his plan for $2.2 trillion in infrastructure improvements,... Read More

Supply Bottlenecks Leave Ships Stranded, Businesses Stymied
Economy
Supply Bottlenecks Leave Ships Stranded, Businesses Stymied

NEW YORK (AP) — A trade bottleneck born of the COVID-19 outbreak has U.S. businesses anxiously awaiting goods from Asia — while off the coast of California, dozens of container ships sit anchored, unable to unload their cargo.  The pandemic has wreaked havoc with the supply... Read More

Whiskey Makers Face Worsening Hangover From Trade Dispute
Trade
Whiskey Makers Face Worsening Hangover From Trade Dispute

LOUISVILLE, Ky. (AP) — A hangover from Trump-era tariff disputes could become even more painful for American whiskey distillers unless their entanglement in a trans-Atlantic trade fight is resolved soon. Bourbon, Tennessee whiskey and rye whiskey were left out of recent breakthroughs to start rebuilding U.S.... Read More

News From The Well
scroll top