US President Mr Donald Trump said the US will lift 25% steel and 10% aluminum Section 232 tariffs on Canada and Mexico within 48 hours. He said “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. Hopefully Congress will approve the USMCA quickly.” As part of the agreement, the US will be able to re-impose the tariffs on metals imports if not enough is done to prevent any surge of metals imports beyond historical levels. The nations have also agreed to ramp up efforts to trace where the metals have come from originally, to stop the diversion of shipments from other nations to dodge tariffs. The enforcement system will aim to advantage primary steel and aluminum producers in the three-nation trading bloc to ensure that the metal is melted, poured or smelted regionally.
The tariffs have stood in the way of getting Trump’s new North American trade deal approved by Congress, and ratified in Canada and Mexico.
Source : STRATEGIC RESEARCH INSTITUTE, STEELGURU
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