US to remove tariffs on Canadian metals, Mexico deal imminent

WASHINGTON/OTTAWA - The United States and Canada on Friday announced a deal to remove tariffs on Canadian steel and aluminum, paving the way for a similar pact with Mexico.

The quota-free deal will eliminate the US metals tariffs within 48 hours as well as Canada's retaliatory tariffs on some $12 billion worth of US products, including pork, beef and bourbon.

The 25% tariff on steel and 10% tariff on aluminum from Canada and Mexico were a major hurdle to ratification of the new trilateral trade deal to replace the 25-year-old North American Free Trade Agreement.

Several prominent US lawmakers had said that a vote on the US-Mexico-Canada Agreement (USMCA) was impossible until after the metals tariffs — and retaliatory measures aimed largely at US farmers — were lifted.

News of the deal to put in place a "monitoring system" for steel and aluminum transshipments broke after US President Donald Trump and Canadian Prime Minister Justin Trudeau discussed the tariffs earlier on Friday.

Trudeau is scheduled to speak to reporters on Friday afternoon after he meets with steel workers at Stelco Holding Inc steel mill in Hamilton, Ontario, his spokesman said on Twitter.

A senior Mexican official said that once the deal is announced and implemented, Canada and Mexico will lift retaliatory tariffs on billions of dollars of US products.

The deal announced on Friday leaves room for the reimposition of tariffs if imports of steel or aluminum "surge meaningfully beyond historic volumes" over a period of time, according to the joint statement. But any retaliation for such action would be limited to the steel and aluminum sectors.

Reuters