Trump reaches deal with Canada, Mexico to immediately lift metals tariffs

Trump reaches deal with Canada, Mexico to immediately lift metals tariffs

The agreement between the U.S., Mexico and Canada completely lifts the 25 percent tariff on steel and 10 percent tariff on aluminum. | Brendan Smialowski/AFP/Getty Images Trade Trump lifts metals tariffs, easing passage of new North American trade deal U.S. lawmakers from both parties have warned that leaving the tariffs in place would hinder attempts to ratify the NAFTA replacement on Capitol Hill. By ALEXANDER PANETTA, MEGAN CASSELLA and SABRINA RODRIGUEZ 05/17/2019 10:45 AM EDT Updated 05/17/2019 04:20 PM EDT 2019-05-17T04:20-0400 Share on Facebook Share on Twitter The Trump administration has reached a deal with Canada and Mexico to lift steel and aluminum tariffs, marking a major step forward on the path to approval of the new North American trade agreement. The deal clears a significant hurdle to ratification of the new U.S.-Mexico-Canada Agreement in all three countries and moves President Donald Trump closer to realization of a signature trade achievement that he could tout during his 2020 reelection campaign.Story Continued Below “I’m pleased to announce that we’ve just reached an agreement with Canada and Mexico, and we’ll be selling our product into those countries without the imposition of tariffs or major tariffs. Big difference,” Trump said in a speech to the National Association of Realtors on Friday. Canadian Prime Minister Justin Trudeau called the announcement “good news for North America” and said he was “very optimistic” Ottawa would be able to move forward on ratifying the NAFTA replacement deal in coming weeks. POLITICO Playbook newsletter Sign up today to receive the #1-rated newsletter in politics Email Sign Up By signing up you agree to receive email newsletters or alerts from POLITICO. You can unsubscribe at any time. Under the tariff agreement, the U.S. has agreed to remove the metals duties against Canada and Mexico and will not impose quotas in their place. Trump had imposed the duties last year, relying on a little-used law that allowed him to impose tariffs on goods deemed essential to national security. The steel and aluminum tariffs of 25 percent and 10 percent, respectively, will be gone within 48 hours, the announcement said. In exchange, Canada and Mexico will also lift the retaliatory tariffs they had imposed on scores of U.S. products, many of them agricultural goods. Canada had imposed retaliatory tariffs against more than $12 billion in U.S. goods, while Mexico had established similar penalties against more than $3 billion in American exports. Canada and Mexico will also drop legal proceedings in which they were challenging the duties at the World Trade Organization. Instead of quotas, the three countries have promised to establish an elaborate tracking system that would monitor for, and prevent, a surge in steel imports into the U.S. from trading partners outside of North America. If
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