U.S. Steel and Aluminum Tariffs on Canada Likely to be Lifted

SEATTLE (Scrap Monster): The U.S. is likely to lift the steel and aluminum tariffs imposed on Canada. According to David MacNaughton, Canada’s ambassador to the U.S, the tariffs are likely to be removed in the next few weeks. It must be noted that the Trump administration had imposed 25% tariff on steel and 10% tariff on aluminum in March last year, citing reasons of national security. The Canadian government had been pushing hard to get the tariffs lifted.

Initially, the U.S. had exempted Mexico and Canada from the tariffs, when they were imposed for the first time. However, it removed the exemptions in order to pressure the countries during the negotiations for the new United States-Mexico-Canada Agreement (USMCA) on trilateral trade. The U.S. administration has not yet restored the exemptions, even after completion of USMCA negotiations, despite pleas from trade partners and business community.

The lifting of tariffs comes amidst speculations that Canada may decline to ratify the new trade deal, if tariffs are still in place. Also, the retaliatory tariffs imposed by Canada on variety of U.S.-made goods are believed to be causing significant troubles to American companies, thereby building pressure to end the tariffs.

Meantime, Ontario Premier Doug Ford noted that steel and aluminum tariffs imposed by the U.S. government hurt the U.S. more than Canada. Speaking at an event organized by the Canadian American Business Council, Ford warned that the U.S is actually losing 16 jobs for every job that it creates.