U.S. lifts tariffs on steel, aluminium imports from Canada, Mexico

Donald Trump

Maguire also said he believes a rebate for Canadian companies that paid tariffs on aluminum and steel should be investigated by the federal government.

The new trade deal, the US-Mexico-Canada Agreement, has to be approved by lawmakers in all three countries. In fact, the Canadians and Mexicans did go along previous year with a revamped regional trade deal that was to Trump's liking.

Trudeau, touring a steel mill in Ontario, said the resolution was the result of "lots of conversations with the President over the past week and understanding as well that these tariffs were harming workers and consumers on both sides of the border". The administration blamed Chinese overproduction for depressing global steel and aluminum prices, driving many USA mills out of business.

The countries will take steps to prevent dumping and the importation of aluminium and steel that is unfairly subsidized, the statement says.

"We greatly appreciate the efforts of our respective governments to reinstate exemptions from Section 232 tariffs for North American aluminum". Manufacturing costs for food and drink packaged in cans made from imported aluminum or steel increased a year ago when the Trump administration imposed tariffs of 25% against Canadian and Mexican steel and 10% against aluminum.

"This administration continues to follow through on their commitment to looking out for the best interests of American companies and consumers", he said.

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"We did make the commitment to work with the United States on watching how the industry is evolving and making sure that we're not becoming victims of global pressures on our steel industry". In return, Canada has agreed to terminate all pending World Trade Organization litigation related to the Section 232 tariffs, and to eliminate Canadian tariffs imposed in retaliation for the U.S. Section 232 measures.

Foreign Affairs Minister Chrystia Freeland with Niagara Centre MP Vance Badawey on an earlier visit to Niagara.

Word of the agreement began to trickle out amid reports that USA negotiators had backed off long-standing demands for a hard limit on imports of Canadian steel and aluminum, part of an effort to keep cheap Chinese product out of the country.

The quota-free deal would eliminate Canada's retaliatory tariff on $12 billion worth of U.S. imports including beef, bourbon and pork, while the USA bid to remove on Canadian metal would be effective within 48 hours.

The announcement came a day after the Trump administration announced it would delay a decision on imposing new tariffs on foreign automobiles, in part because it said it was working to negotiate new trade agreements with Japan and the European Union.

She said: "We are already preparing a list of possible items that would be on that list".

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While several US Democrats applauded the removal of the tariffs, some said the USMCA was not yet ready for their support. The Coalition of American Metal Manufacturers and Users (CAMMU), a group that was formed to fight against Trump's metal tariffs, praised the decision.

Trudeau avoided mentioning China by name - the country that the US and Canada must now carefully monitor, under the terms of the agreement, to prevent cheap foreign steel from being dumped into North America.

"Canada buys more American steel than any other country in the world, accounting for some 50% of US exports", the Canadian government says.

"Obviously, these continued tariffs on steel and aluminum and our countermeasures, represented significant barriers to moving forward with the new NAFTA agreement", he said on Friday. These import duties are now to be omitted. It also signals a cooling of trade tensions between the allies as negotiations between the U.S. and China face uncertainty. We would never accept a hard quota. "I think they finally heard us", said one source, speaking on the condition of anonymity, citing the delicate new phase of the negotiations.

In light of the agreement, Vice President Pence tweeted that he would be traveling to Canada to work on the revamped trade agreement, calling the deal "a WIN for all three nations".

"I'm pleased to announce that we've just reached an agreement with Canada and Mexico, and we'll be selling our products into those countries without the imposition of tariffs, or major tariffs", Trump announced.

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