The U.S. will eliminate Section 232 tariffs on steel and aluminum from Canada and Mexico in exchange for the repeal of retaliatory duties on U.S. goods, though all parties retain authority to re-impose 25 and 10 percent tariffs if there is a surge in imports and consultations about the sudden increase fail.
[May 17, 2019 | InsideTrade.com]
The U.S. and Canada will roll back all tariffs by Monday, according to a joint statement. President Trump confirmed that a deal has also been struck with Mexico, but details on that deal had not been disclosed at press time. The terms of the deal with Mexico are expected to be the same as the agreement with Canada.
“I am pleased to announce that we've just reached an agreement with Canada and Mexico and we will be sending our product into those countries without the imposition of tariffs or major tariffs,” President Trump told reporters on Friday. “Hopefully Congress will pass the [U.S.-Mexico-Canada Agreement] quickly,” he added.
Mexico’s Economy Ministry also said it hopes the agreement to lift the tariffs will lead to the ratification of USMCA. “The Ministry of Economy reaffirms its position with regard to the need to guarantee competitive productive integration in North America, for which it welcomes the agreement reached today, since this decision paves the way for the ratification of the [USMCA] in the near future,” it said in a statement.
Inside U.S. Trade previewed Friday’s announcement earlier that day.
The U.S. and Canada also agreed to terminate all “pending litigation between them in the World Trade Organization regarding the Section 232 action” and monitoring measures will be implemented to prevent dumped and transshipped metals.
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