After imposing a 25% tariff on steel and a 10% tariff on aluminum from Canada last year, the US is reportedly set to remove those tariffs today.
A joint statement from the two countries said the new deal comes about after “extensive discussions” on trade in steel and aluminum covered by the action taken pursuant to Section 232 of the Trade Expansion Act of 1962.
The statement said the countries have agreed to eliminate all tariffs the United States imposed under Section 232 on imports of aluminum and steel products from Canada, and all tariffs Canada imposed in retaliation for the Section 232 action taken by the United States.
In addition, the two countries have agreed to terminate all pending litigation between them, in the World Trade Organization regarding the Section 232 action.
Going forward, the US and Canada will implement “effective measures” to:
An agreed-upon process will also be established for monitoring aluminum and steel trade between them, the two countries.
“In monitoring for surges, either country may treat products made with steel that is melted and poured in North America separately from products that are not,” the statement said.
Finally, in the event that imports of aluminum or steel products surge “meaningfully beyond historic volumes of trade over a period of time… the importing country may request consultations with the exporting country,” according to the statement.
“After such consultations, the importing party may impose duties of 25%for steel and 10 percent for aluminum in respect to the individual product(s) where the surge took place (on the basis of the individual product categories set forth in the attached chart).”
If the importing party takes such action, “the exporting country agrees to retaliate only in the affected sector.”
The changes will take effect “no later than two days from the issuance of this statement.”