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Montevideo, June 18th 2019 - 16:54 UTC

 

 

New North American trade pact closer as US lifts tariffs on steel and aluminum from Canada and Mexico

Saturday, May 18th 2019 - 09:59 UTC
Full article 6 comments
The agreements, which will not impose US quotas on Canadian and Mexican metals will also eliminate Mexican and Canadian retaliatory tariffs on US products The agreements, which will not impose US quotas on Canadian and Mexican metals will also eliminate Mexican and Canadian retaliatory tariffs on US products
US President Donald Trump had imposed the global “Section 232” tariffs of 25% on steel and 10% on aluminum in March 2018 on national security grounds US President Donald Trump had imposed the global “Section 232” tariffs of 25% on steel and 10% on aluminum in March 2018 on national security grounds
“This is just pure good news for Canadians,” Canadian Prime Minister Justin Trudeau said after announcing the deal at Stelco Holdings Inc’s steel mill “This is just pure good news for Canadians,” Canadian Prime Minister Justin Trudeau said after announcing the deal at Stelco Holdings Inc’s steel mill
Jesus Seade, Mexico’s deputy foreign minister for North America, said the deal “measurably increases the probability” the USMCA will be approved Jesus Seade, Mexico’s deputy foreign minister for North America, said the deal “measurably increases the probability” the USMCA will be approved

The United States struck deals on Friday to lift tariffs on steel and aluminum imports from Canada and Mexico, the three governments said, removing a major obstacle to legislative approval of a new North American trade pact.

The separate agreements, which will not impose US quotas on Canadian and Mexican metals shipments, will also eliminate Mexican and Canadian retaliatory tariffs on a broad range of US products, including pork, beef and bourbon.

The United States and Canada said their agreement will be implemented by Sunday afternoon, and includes new curbs aimed at preventing dumped steel and aluminum from China and other countries from entering the US market via Canada. 

US President Donald Trump had imposed the global “Section 232” tariffs of 25% on steel and 10% on aluminum in March 2018 on national security grounds, invoking a 1962 Cold War-era trade law.

Both Canada and Mexico argued for 14 months that their metals industries posed no security threat as their economies are integrated with the United States, and challenged the tariffs before the World Trade Organization.

“This is just pure good news for Canadians,” Canadian Prime Minister Justin Trudeau told reporters after announcing the deal to workers at Stelco Holdings Inc’s steel mill in Hamilton, Ontario. 

Stelco shares soared 11% on the news, while top US steelmaker Nucor fell 3.1% and US Steel Corp, which had seen massive profit improvement because of the tariffs, fell 1.2%. 

Trump, speaking to realtors in Washington, called the pact “a fantastic deal for our country” and said Congress would hopefully approve the USMCA quickly. “Then the great farmers and manufacturers and steel plants will make our economy even more successful than it already is.”

Jesus Seade, Mexico’s deputy foreign minister for North America, said the deal “measurably increases the probability” the USMCA will be approved before the US Congress’ summer break in August. Some

US lawmakers say passage would become more difficult after the recess due to budget battles expected in the fall and increased 2020 presidential campaign activity. 

Top Comments

Disclaimer & comment rules
  • :o))

    Is this the famous “DAMAGE-CONTROL” after losing the Trade-War with China?

    May 18th, 2019 - 12:38 pm +1
  • :o))

    @Mattie

    REF: “Kill NAFTA!”

    Was a Trade-War with China not humiliating+prejudicial enough? Maybe, the sweet memories of the lost wars in the Middle East + elsewhere [Vietnam?] were forgotten!

    May 20th, 2019 - 04:03 pm +1
  • :o))

    @Mattie

    REF: “Kill NAFTA!”

    Remember the “Red Line” in Syria? Disappeared “miraculously” - didn't it?

    Remember the fearsome “attack” with more than sixty - 60 - Tomahawks on a small+dilapidated airport which Syria supposed to have used for launching with the Chemical Weapons?

    Just to joggle your disappearing memory; after the vicious shower of more than 60 Tomahawks; there was no casualty at all, just MINOR damage to the already dilapidated small airport and NO loss of ANY Syrian or Russian War-Planes! And The BEST joke was that the airport began functioning NORMALLY within 24 Hrs - THAT vicious was the fearsome attack!

    Always wondered from which Toy-Shop were the missiles bought? Maybe imported from China?

    May 20th, 2019 - 10:27 pm +1
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