May 20 | 2019
Canada and Mexico Import Tax Revoked
The U.S. has lifted steel and aluminum tariffs on imports from Canada and Mexico, paving the way for approval of a new North American trade deal.
Tariffs of 25 percent on steel imports and 10 percent on aluminium imports from the two neighboring countries were ended, and under the agreement, there will be no quotas on how much steel or aluminium the countries buy from overseas.
“I’m pleased to announce that we’ve just reached an agreement with Canada and Mexico and will be selling our product into those countries without the imposition of tariffs or major tariffs,” President Trump said in a speech to the National Association of Realtors
USMCA Positive
It is widely expected that this agreement will clear a major hurdle for approval of the new US-Mexico-Canada Agreement trade deal, or USMCA, which was fleshed out in 2018, replacing the North American Free Trade Agreement, or NAFTA.
“We anticipate reciprocal 232 tariffs between the U.S., Canada and Mexico will be replaced by alternative effective quarter base programs among the USMCA countries,” said Mark Millett, CEO of Steel Dynamics.
The stringent tariffs have dampened breakbulk demand in North America, as uncertainty impacted trade and the new agreement is widely hoped to provide a boost for consumption and project cargo demand.
"These tariffs were harming workers and consumers on both sides of the border. As we look at moving forward with the new NAFTA, it didn't make a lot of sense to continue to have tariffs on steel and aluminium between our countries,” Canadian Prime Minister Justin Trudeau said.
EU Eyes Further Rollback
The European Union is also watching developments closely, as its steel and aluminum exports to the U.S. remain subject to the tariffs. With trade tensions between the U.S. and China still unresolved, it is hoped that the U.S. may seek to bring further allies to its positions.
According to a survey by the industry association, the European Union Chamber of Commerce in China, nearly one-third of EU companies operating in China are damaged by the tariffs, yet are broadly in support of the issues behind the crackdown on China.
“The fundamental issues driving the trade war need to be resolved by addressing market access barriers and regulatory challenges while also tackling state-owned enterprises reform and forced tech transfer,” said Charlotte Roule, the chamber's vice president.
Tariffs of 25 percent on steel imports and 10 percent on aluminium imports from the two neighboring countries were ended, and under the agreement, there will be no quotas on how much steel or aluminium the countries buy from overseas.
“I’m pleased to announce that we’ve just reached an agreement with Canada and Mexico and will be selling our product into those countries without the imposition of tariffs or major tariffs,” President Trump said in a speech to the National Association of Realtors
USMCA Positive
It is widely expected that this agreement will clear a major hurdle for approval of the new US-Mexico-Canada Agreement trade deal, or USMCA, which was fleshed out in 2018, replacing the North American Free Trade Agreement, or NAFTA.
“We anticipate reciprocal 232 tariffs between the U.S., Canada and Mexico will be replaced by alternative effective quarter base programs among the USMCA countries,” said Mark Millett, CEO of Steel Dynamics.
The stringent tariffs have dampened breakbulk demand in North America, as uncertainty impacted trade and the new agreement is widely hoped to provide a boost for consumption and project cargo demand.
"These tariffs were harming workers and consumers on both sides of the border. As we look at moving forward with the new NAFTA, it didn't make a lot of sense to continue to have tariffs on steel and aluminium between our countries,” Canadian Prime Minister Justin Trudeau said.
EU Eyes Further Rollback
The European Union is also watching developments closely, as its steel and aluminum exports to the U.S. remain subject to the tariffs. With trade tensions between the U.S. and China still unresolved, it is hoped that the U.S. may seek to bring further allies to its positions.
According to a survey by the industry association, the European Union Chamber of Commerce in China, nearly one-third of EU companies operating in China are damaged by the tariffs, yet are broadly in support of the issues behind the crackdown on China.
“The fundamental issues driving the trade war need to be resolved by addressing market access barriers and regulatory challenges while also tackling state-owned enterprises reform and forced tech transfer,” said Charlotte Roule, the chamber's vice president.
