US lifts steel and aluminium tariffs on Canada

[zenkai]

Source

The US has reached a deal with Canada to lift tariffs on steel and aluminum imports in a move that could lead to approval for a new North American trade deal.

In a joint statement, the US and Canada announced that a 25% tariff on steel imports, and of 10% on aluminum, will end in 48 hours.

It is widely expected the US and Mexico will made a similar announcement soon.

The US implemented the tariffs last year on grounds of "national security".

Under the agreement, there will be no quotas on how much steel or aluminum the three countries buy from overseas.

However, the US and Canada will monitor imports and if a country is determined to be buying in too much, one of the other nations can request a consultation and potentially re-impose tariffs.

Getting rid of the tariffs is viewed as a key hurdle to approval for the US-Mexico-Canada Agreement trade deal (USMCA) which was signed in 2018. It replaced the North American Free Trade Agreement.

Meanwhile, President Donald Trump has delayed a decision on whether to impose levies on cars and car parts imports.

The White House has put back the decision by six months to allow more time for trade talks with the European Union and Japan.

Tariffs of up to 25% on imported cars and car parts were under consideration.

A report by the Commerce Department claimed that imports of foreign-made cars and auto parts into the US were a threat to national security.

The report has not been published, but in Friday's announcement Mr Trump cited its findings which conclude that US carmakers are missing out on revenues to invest in research and development (R&D).

It said: "The lag in R&D expenditures by American-owned producers is weakening innovation and, accordingly, threatening to impair our national security."

The president said he agreed with the study's finding that imported cars and trucks were "weakening our internal economy".
Trade relations

The delay comes at a critical time for the US and its trade relations with other countries.

On Monday, Beijing implemented retaliatory tariffs on US imports after Mr Trump lifted levies on a further $200bn of Chinese goods, following a breakdown in trade talks between the two nations.

The US President characterised it as a "little squabble".

However, shortly afterwards, Mr Trump declared a "national emergency" to protect US computer networks from "foreign adversaries".

While the announcement did not name any individual companies, it was widely perceived to be directed at Huawei, the Chinese telecoms equipment maker, which has faced claims its products could be used by China for surveillance.

Huawei has vehemently denied the allegations.
Retaliation

Mr Trump has taken an aggressive attitude in the past towards cars made outside the US.

In 2017, he warned car makers that if they built cars in Mexico for export to the US then they would attract a 35% tax.

Most of the major car firms have plants in Mexico and the industry has warned that tariffs would result in higher prices and threaten jobs in the US.
Image caption Cecilia Malmstrom said the EU would respond if the US lifted car tariffs

The EU has threatened to respond if the US lifts tariffs on imports of European cars.

Cecilia Malmstrom, European Commissioner for Trade, told Bloomberg earlier this week that the EU was already considering which US products to target with higher levies if Mr Trump's administration went ahead with the move.

She said: "We are already preparing a list of possible items that would be on that list.

"The moment this is official - if this happens, I still hope it won't - then we would publish that list."

Last year, the EU imposed higher tariffs on some US goods, including Harley Davidson motorcycles, in retaliation for Washington's decision to raise duties on imported steel and aluminium.

And that's the way the cookie crumbled.

[Stormspellz]

So the US Tarifs did what again other then tax the consumer?

[Elegiac]

So the US Tarifs did what again other then tax the consumer?

Something something MAGA.

[cubby]

And that's the way the cookie crumbled.

Just another day of the Emperor showing us all his new clothes. Strumpet and idiot, as usual, come to mind when I see what nonsense Cheeto is throwing at the world in another day ending in "y".

[Draco-Onis]

And that's the way the cookie crumbled.

Not that I am unhappy about this but this makes no sense, NAFTA 2.0 has not been ratified we are still using NAFTA and it's looking unlikely to pass since Trump hasn't pushed congress to do it and elections are coming up in Canada, Mexico and US.

[Najnaj]

Why are we even talking about Trump anymore? He has one power left, to start a war but this will likely be 5 min before he is impeached. Everything else is just done without him as he watches TV in the White House.

The most useless president in US history.

[breslin]

So the US Tarifs did what again other then tax the consumer?

Renegotiated NAFTA

[Elegiac]

Renegotiated NAFTA

Okay. And how is NAFTA 2 Covfefe Boogaloo better?

[Stormspellz]

Renegotiated NAFTA

NAFTA still has not been ratified by anyone, and Mexico still hasn't even signed it, let alone ratified it. But of course how is it better? if at all.

[Odinfrost]

So they removed some of the "spilled over" tariffs which were aimed at China. So when is the rest of Not-China having them removed? And when is it also just removed from China so that stupid trade war will end?

[Ghostpanther]

Good to hear. I support the President and his handling of the trade issues. Another one of his campaign promises he ran on and is striving to keep. Which is uncommon among presidents.

[Low Hanging Fruit]

He said he would do it. Everyone said it would accomplish nothing. Everyone was right. I guess all that was lost was the money from American customers and businesses from the tariffs.

[breslin]

NAFTA still has not been ratified by anyone, and Mexico still hasn't even signed it, let alone ratified it. But of course how is it better? if at all.

You said it did nothing other than Tax the US consumer, if you agree that it expedited the change of NAFTA regardless if the outcome is good or bad your original statement would still be incorrect.

[Stormspellz]

You said it did nothing other than Tax the US consumer, if you agree that it expedited the change of NAFTA regardless if the outcome is good or bad your original statement would still be incorrect.

first it was sarcastic comment, and who says it expedited anything, in fact probably did the opposite.

[Draco-Onis]

You said it did nothing other than Tax the US consumer, if you agree that it expedited the change of NAFTA regardless if the outcome is good or bad your original statement would still be incorrect.

I don't think you get it Trump has basically done the end zone dance at the 5 yard line we still under regular NAFTA and the new version may never be ratified due to elections coming up in all three countries.

[Paranoid Android]

And that's the way the cookie crumbled.

I started the fire that burned down half my house and I put it out.

From your sorce:

The US implemented the tariffs last year on grounds of "national security".

The Orange Moron implemented the tariffs on Canada and now celebrating they are removing them. This idiot has tried or done this multiple times where he creates the crisis and then takes credit ending it.

[Orbitus]

Okay. And how is NAFTA 2 Covfefe Boogaloo better?

Obviously because Trump's name is on it.

[Vash The Stampede]

We gotta keep America's hat happy.

[Najnaj]

Who is Jimmy Carter for $500, Alex.

The winner of the 2002 Nobel Peace Prize, Successful middle east peace broker and one of the most decorated presidents in US history? Even in the 80s when his type of politics were out of fashion he was still seen as a mid ranking president.

His one flaw was that he did not play ball with his opponents, that one thing that Trump promised not to do and then did anyway...or tried to do rather.

[Fincayra]

Why are we even talking about Trump anymore? He has one power left, to start a war but this will likely be 5 min before he is impeached. Everything else is just done without him as he watches TV in the White House.

The most useless president in US history.

He doesn't even have that power. Congress declares war.