Canada and US lift tariffs on steel and aluminum

18 Mai, 2019, 03:58 | Auteur: Auguste Feret
  • Flags of the U.S. Canada and Mexico fly next to each other in Detroit Michigan

"The two leaders discussed the United States' Section 232 tariffs on steel and aluminum and Canada's retaliatory tariffs", the Prime Minister's Office said in a readout of the call.

The recent deal calls for Canada and Mexico to establish stricter monitoring and enforcement guidelines to prevent steel from China from being shipped to the US through the countries' territories.

"The United States and Canada will implement effective measures to: prevent the importation of steel and aluminum that is unfairly subsidized and/or sold at dumped prices; and prevent the transshipment of steel and aluminum made outside of Canada or the United States to the other country". But Mexico supplied about $12 million of aluminum, iron and steel goods to ME previous year, roughly 19 percent of the $65 million ME imported from Mexico in 2018.

Citing national security considerations, Trump imposed tariffs on steel and aluminum in March 2018 in response to what the USA called a flood of excess Chinese commodities onto global markets. China has always been accused of flooding world markets with subsidized metal, driving down world prices and hurting USA producers.

Initially, Mexico, Canada, and the European Union were given exemptions to these tariffs, but those expired on June 1.

Senate Republicans, including Sen.

The effective date for removing the tariffs is the outstanding issue, the news service said.

Canada and Mexico reacted to the steel tariffs by imposing tariffs on US farming products and other goods. The deal between the three North American countries contains a provision that will block Chinese metal from being shipping into the United States via Canada or Mexico.

In 2018 the USA imported $191.7 billion in passenger vehicles and light trucks, with more than $90 billion of these imports coming from Canada and Mexico, which are duty-free under USMCA, Bloomberg says.

A report by the Commerce Department had found that America's innovation capacity "is now at serious risk as imports continue to displace American-owned production".

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President Donald Trump pumps his fist before speaking at the National Association of REALTORS Legislative Meetings and Trade Expo, Friday, May 17, 2019, in Washington. In a joint statement, the USA and Canadian governments say those trade barriers would be removed within two days, as would the tariffs on American agricultural products that Canada imposed in retaliation. Not even American automakers support it.

"I don't think there is any more doubt about it, the president is far more attracted to managing imports than expanding exports", said Rufus Yerxa, president of the National Foreign Trade Council. "The entire USA auto and auto parts sector understands why it needs a global strategy, but the President clearly prefers 1980s style protectionism".

Originally, the Trump administration had planned to make a decision whether or not to apply a tariff to imported cars and vehicle parts in May.

Toronto trade lawyer Lawrence Herman said it's too soon to predict whether Democrats in the U.S. House of Representatives will ratify the new North American trade pact.

US automakers ostensibly would benefit from a tax on their foreign competitors.

Taxing auto tariffs would mark a major escalation in Trump's aggressive trade policies. "The president is also right to be deescalating tension with our North American allies".

"This is pure good news for Canadians and for families as we head into a long weekend", he said.

Trump reportedly chose to delay his decision to avoid overlap between the automotive import issue, ongoing NAFTA negotiations, and a separate trade spat with China, according to The New York Times.

Foreign companies supplied theU.

In 2017, General Motors, Ford, Fiat Chrysler and Tesla combined had a 44.5% share of USA auto sales, according to Autodata Corp. They would also lift their retaliatory tariffs on the U.S.

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