Candace Elliott / Reuters
Updated at 15:00 ET
Trump Administration has reached an agreement to raise tariffs on imports of steel and aluminum from Canada and Mexico, which can turn the three countries one step closer to ratifying a USMCA trade agreement that will replace NAFTA.
Tariffs will be canceled within two days, according to a joint statement by the United States and Canada, published by the Ministry of Foreign Affairs of Canada.
Tariffs on metals from Canada and Mexico to the United States have been in operation for almost a year, while steel imports fall under a 25% tariff and aluminum up to 10% increase. Relevant fares from Canada and Mexico have been around for so long.
"I am pleased to announce that we have just reached an agreement with Canada and Mexico" to stop the recent tariffs, said President Trump during the National Association of Realtors on the eve.
Then Trump urged Congress to ratify USMSA to "make our economy even more successful than it already exists – if possible, what may be."
Undersecretary of North America Jesus Sida also welcomed the agreement stating that she was received with "great enthusiasm" in Mexico. He added: "This action opens the way for ratification" of the NAFTA replacement agreement.
When discussing a breakthrough on Friday, Prime Minister Justin Trudeau said "There was no breakthrough in the talks"
. ] At the Stelco metallurgical plant in Hamilton, Ontario, Trudeau reported to reporters that he had had many talks with the president over the past week, as well as an understanding that these tariffs are detrimental to workers and consumers on both sides.
And with the leaders of both countries, who now hope to ratify the USMCA, Trudeau said: "There was little sense to continue to have steel tariffs and aluminum between our countries."
Trudot spoke with Trump about an agreement on tariff cessation around half a day, according to Cameron Ahmad, Director of Communications Trudeau.
In a joint statement by the United States and Canada, the two countries set a way to control the production of aluminum and steel between them, in order to prevent the "overload" of aluminum and steel produced by a third country.
The agreement also calls on both countries to prevent the import of aluminum and steel that are "unfairly subsidized and / or sold"
. The Covenant also leaves room for tariffs. "The import of aluminum or steel products significantly increases in historical trading volumes over a period of time, taking into account market share ".
"Canada buys more American steel than any other country in the world, accounting for about 50% of American exports," the Canadian government says. She adds that almost 84% of Canadian aluminum production is exported to the US
In response to a tariff deal, the Coalition of American Metal and Consumer Users, or CAMMU, welcomed this news and called on the Trump administration to raise other steel and aluminum tariffs. A group of American companies and trade associations represents about 30 thousand companies and was created to protect against the tariffs of Trump on metals.
"These tariffs are detrimental to the US manufacturing sector, and in particular to companies that consume steel and aluminum in the US, due to higher prices and timing for both domestic and imported steel and aluminum, which makes the United States an island high the price of steel, "says the statement that came to the NPR on the same day.
CAMMU also praised the new agreement to replace the new exclusionary quotas, which he called" even worse for American companies. " Trump set steel and aluminum tariffs for each country, with the exception of Canada and Mecca about a month after receiving a letter from 25 American metallurgical companies calling on him to "act to prevent steel overcapacity and the growth of steel imports because of undermining our national security and viability of the US steel industry."
Trump's original order included cutting for US closest neighbors. But after talks on the revised NAFTA deal lasted longer than expected by the US administration, Canada and Mexico were included in the tariffs. In late November, leaders of the three countries signed a new agreement on Mexican Canada. It will not enter into force until the legislative bodies of all three countries have voted to ratify the trade pact.
At the end of April, chairman of the Senate Finance Committee Chuck Grasley, R-Iowa, warned Trump that the USMCA deal would be "dead" if steel and aluminum tariffs were canceled.
The news of the tariff withdrawal agreement came just two days after the Finance Minister Stephen Mnuchin stated during the testimony before the Senate subcommittee that the agreement had come into force. Mexican Minister of Economic Affairs, Gracea Marquez Colin, said he believed that the solution to the tariff challenge was inevitable, as she met with Toronto's Canadian Foreign Minister Christina Friland.