The US announces plans to raise steel and aluminum tariffs for Canada and Mexico
The United States has reached an agreement to lift steel and aluminum tariffs in Canada and Mexico, eliminating a major obstacle to the revision of the North American Free Trade Agreement.
Two persons familiar with the matter told CNBC Joint Statement On Friday, the Canadian and US governments declared that the US would abolish the metal tariffs within two days. Canada will remove duties on American goods in retaliation for steel and aluminum duties. They will also:
- close all pending litigation in the World Trade Organization in relation to customs duties
- take measures to "prevent the importation of aluminum or steel that is unjustifiably subsidized and / or sold at dumped prices" and " "to prevent the transhipment of aluminum and steel produced outside Canada or the United States to another country. "
- Conduct an" agreed process to monitor the trade in aluminum and steel between them "
while the US and Canada formally announced a deal To cancel duties, Mexico made no immediate statement on Friday afternoon [1
9659002] The Canadian and Mexican governments, along with leading US lawmakers, have urged the Trump government to cut its tariffs before states approve the United States' United States Mexico-Canada agreement with President Donald Trump and Canadian Prime Minister Justin Trudeau Friday on tariffs on metals and tariffs imposed by Canada in retaliation against US goods.
Trudeau should talk to steel workers on Friday afternoon.  A worker runs into a plant in Monterrey, Mexico, on August 27, 2018 , passing a steel coil loaded on a truck.
Julio Cesar Aguilar | AFP | Getty Images
T Rump pointed to a national security threat when he imposed tariffs of 25 percent and 10 percent on steel and aluminum imports last year. When the White House decided not to exempt Canada and Mexico, US neighbors and some members of Congress asked why the Allies posed a threat to the US through Congress. Senate Finance Committee Chairman Chuck Grassley, R-Iowa, among other things, urged him to cut tariffs before the legislature ratified the trade agreement How this could affect drug prices in the US Mexico passed a labor law last month, to partially overcome these concerns.
On Wednesday, US Trade Representative Robert Lighthizer met with Canadian Foreign Minister Chrystia Freeland. The negotiators were expected to discuss a procedure to abolish tariffs.
The Trump government intends to send documents to Congress soon enough to enable a vote on the USMCA before the legislature's departure for the entire month of August.
The Whites The recent escalation of the trade war between House and China has unsettled investors, raising concerns about harm to businesses and consumers. But the developments on Friday have boosted the markets.
Before reports of the abolition of steel and aluminum tariffs, the Trump administration announced that it would postpone import duties on cars and car parts from Europe, Japan and other countries.
Correction: An earlier version was misclassified when Trudeau was to speak with steelworkers. It was Friday afternoon.
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