President Donald Trump on Friday announced a deal to lift U.S. tariffs on steel and aluminium imports from Canada and Mexico that had created friction between the neighbours and blocked a new North American free trade agreement.
“I am 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,” Mr. Trump said. His statement came moments after Canada released the text of the agreement between Ottawa and Washington in which they agreed to eliminate U.S. tariffs on steel and aluminium, and Canada’s retaliatory measures, within no more than two days.
Mexico confirmed it had reached a similar agreement with the U.S. The steep U.S. tariffs imposed last year — 25% on steel and 10% on aluminium — became a major stumbling block to ratifying a new North American trade pact negotiated last year by the three countries.
Canada and Mexico agreed to withdraw all complaints lodged against the U.S. at the World Trade Organization (WTO). They also agreed to monitor imports to ensure metals that are sold at “dumped prices” — below the cost of production — are not purchased in or shipped through Canada and Mexico. The U.S. Trade Representative’s office said the agreement “provides for aggressive monitoring and a mechanism to prevent surges in imports of steel and aluminium.”
