The United States announced on Friday, May 17, 2019, that the steel and aluminum tariffs on steel and aluminum from North American trading partners Canada and Mexico would be removed in 48 hours. The agreement also removes any retaliatory tariffs put in place by those countries. Further, the agreement calls for measures that will protect against steel or aluminum that is unfairly subsidized or transshipments of materials made outside of North America.
The new agreement will help pave the way for U.S. Congressional approval of the USMCA (replacement for NAFTA). Congressional leaders have said that they would not consider approval of the USMCA agreement while the steel and aluminum tariffs were in place for Canada and Mexico. The USMCA will require additional approvals by Mexico and Canada before it can be enacted.
The joint statement on Friday’s steel and aluminum agreement initially issued by Canada.