:US agree with Canada and Mexico to abolish steel tariffs
For the first time since the beginning of his trade campaign, US President Donald Trump has abolished custom tariffs he introduced himself. There are no customs barriers to trade in steel and aluminum products with neighboring Canada and Mexico within 48 hours, the US and Canada announced Friday.
“I am pleased to announce that we have reached an agreement with Canada and Mexico, and we will sell our product to these countries, with no tariffs or significant duties,” said Trump. Canada’s Prime Minister Justin Trudeau said he wanted to move forward with the common free trade agreement. There is no sense in raising tariffs on steel and aluminum.
Canada, USA and Mexico create the largest free trade agreement in the world
Trump had covered retailers around the world with special tariffs on steel and aluminum in the spring of 2018 under cover of national security. Many countries have introduced retaliatory tariffs against the US. The agreement with Mexico and Canada is to be seen in the context of the jointly negotiated free trade agreement USMCA. The agreement still has to be ratified by the parliaments of all three countries before it can enter into force. The parliamentarians had considerable reservations, mainly because of the steel tariffs. USMCA is one of the largest free trade zones in the world.
In addition to the waiver of tariffs, the two countries also agreed to settle all litigation in the matter. In addition, they want to act effectively against transit steel, which comes from China, for example, and is passed on to the other country. For the abolition of duties, the two neighboring US countries must therefore ensure that Chinese steel can not enter the US via Canada or Mexico.
Trump had already announced a customs relief for Turkey the day before. In the future, steel and aluminum imports from Turkey will only be occupied by 25 percent instead of the previous 50 percent. The decision on the threatened tariffs for the EU and Japan was also postponed for half a year. With Japan, the US agreed to duty-free beef exports. (AP)