Donald Trump to lift US steel tariffs on Canada and Mexico, clearing way for new Nafta
- Nations agree to ramp up efforts to trace origins of metals, stopping diversion of shipments from other nations to dodge levies
- Tariffs have stood in the way of getting Trump’s USMCA trade deal approved by Congress, and ratified by Canada and Mexico
The US will lift steel and aluminium tariffs on Canada and Mexico in favour of stronger enforcement actions, in a move that will help clear the way for ratification of the new Nafta.
In a joint statement on Friday, the US said it removed metals tariffs on Canadian steel and aluminium imports in exchange for Canada scrapping retaliatory tariffs on US goods.
The deal will take effect in no longer than two days, according to the statement. Mexico plans to make an announcement later in the day, according to people familiar with the matter.
The move would lift the 25 per cent steel and 10 per cent aluminium tariffs the US placed on the two trading neighbours almost a year ago in the name of national security.
The decision sparked retaliatory duties from Canada and Mexico on US farming goods and other products, and became an obstacle for lawmakers in all three nations to ratifying the deal.
As part of the agreement to scrap the levies, the US will be able to reimpose the tariffs on metals imports if not enough is done to prevent a surge of imports beyond historical levels.