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U.S. lifts steel and aluminum tariffs on Canada and Mexico

After having been in place for almost a year, the tariffs – 25 per cent on imports of steel and 10 per cent on aluminum – will be removed by May 19.


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May 18, 2019 by Canadian Plastics

The U.S. has lifted steel and aluminum tariffs on Canada and Mexico which have been in place for almost a year.

A joint statement from the U.S. and Canadian governments on May 17 said the tariffs – 25 per cent on imports of steel and 10 per cent on aluminum – would be removed within two days. The two sides agreed on monitoring and enforcement mechanisms to prevent steel dumping that might affect prices

The deal applies to the tariffs the U.S. imposed last June by citing national security, as well as Canada’s retaliatory tariffs on steel, aluminum and as other consumer products.

Since they were put in place last summer, Canada has argued that the tariffs were illegal. As part of the deal, the Trudeau government has agreed to end its legal challenge against the U.S at the World Trade Organization on the section 232 tariffs.

The tariffs have disrupted supply chains and added extra costs for consumers and businesses across a wide range of industries on both sides of the border, and were becoming a barrier to ratifying the new North American free trade pact.

In Canada, the tariffs were seen as an impediment to passing the new replacement deal for NAFTA – called the United States-Mexico-Canada Agreement, or USMCA – in the House of Commons. Canada still has to ratify the agreement and send implementation legislation through the House.

Canadian business associations applauded the end of the dispute. “The tariffs imposed on both sides of the border have hurt many small firms in Canada,” said Corinne Pohlmann, senior vice president of national affairs with the Canadian Federation of Independent Business. “Today’s announcement is great news and we congratulate the Canadian government on its successful negotiations.”