Published: Sat, May 18, 2019
World Media | By Shelia Harmon

U.S. to lift steel tariffs on Canada, Mexico

U.S. to lift steel tariffs on Canada, Mexico

The two countries have slapped tariffs on hundreds of billions of dollars in each other's products. But Trudeau objected, and the deal does not include quotas, two Canadian sources said. In the US, meanwhile, congressional Democrats are still calling for changes to the deal before they will vote for it.

U.S. Vice President Mike Pence said he would meet with Trudeau in Ottawa on May 30 to discuss "advancing" ratification. In addition, Canadian Foreign Affairs Minister Chrystia Freeland met with USA officials and members of Congress in Washington, D.C., earlier in May.

"We stayed strong", he said.

Reacting to the announcement, Dieter Kempf, head of the German industrial federation, said "cars do not threaten the national security of the United States". "They were hurting Canadian consumers, Canadian workers and American consumers and American workers".

Early afternoon, the United States and Canada agreed to jointly lift tariffs on steel and aluminum.

US stocks gained. Trade Representative Robert Lighthizer has briefed lawmakers on Capitol Hill that an announcement of a deal was close, the person said. U.S. In public hearings previous year, the idea of imposing import taxes on cars drew nearly no support, even from the USA auto industry.

Canadian officials have said these retaliatory measures would be lifted the minute the Americans dropped their tariffs.

"Ending tariffs means Canadians can get back to work".

The deal to drop the tariffs is connected to an agreement related to measures to restrict the dumping of cheap steel, like what comes in from China and Russian Federation, into the North American market.

"But it looks like some sense of sanity has prevailed in the White House at long last, helped along the way by huge pressure from the US private sector that found these surcharges to be very hurtful", Herman said. -Canada border. Thomas J. Donohue, president and CEO of the U.S. Chamber of Commerce, issued a statement saying it "delivers a welcome burst of momentum for the USMCA in Congress".

By avoiding quotas, the deal announced Friday marks a win for the two countries while also addressing Trump's worries about Chinese steel and eliminating a major stumbling block to Congress approving the replacement to the North American Free Trade Agreement, the president's signature trade deal.

In exchange for getting the tariffs lifted, Canada and Mexico would agree to actions meant to stop steel and aluminium from China and other countries being sent to the USA through Canada and Mexico.

Ottawa has also been working to demonstrate to Washington that it has taken steps to stem the flow of cheaper Chinese metals into Canada. CNBC reported on Friday that the next round of US-China negotiations were "in flux", with both sides refusing to compromise.

The agreement says the USA and Canada will establish a process for monitoring steel and aluminum trade between them.

The Commerce Department found that because of rising imports of autos and parts over the past 30 years, the market share of US -owned automakers has fallen.

In March 2018, the Trump administration imposed a 10 percent tariff on all imports of steel to the United States and a 25 percent tariff on all imports of aluminum.

While the tariffs are a key impediment to getting the new NAFTA approved, several other hurdles will remain. They had cost US hog producers some $1.5 billion, according to the pork council.

American allies Mexico, Canada, Japan and Germany are the leading sources of imported cars and trucks.

Efforts to have the metals tariffs lifted have been tied to ratification of the United States-Mexico-Canada Agreement (USMCA), which was created to replace the 25-year-old NAFTA and which was signed by the three countries' leaders on November 30.

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