Canada, the United States, and Mexico have reportedly reached an agreement to lift steel and aluminum tariffs, according to news reports.
Prime Minister Justin Trudeau and U.S. President Donald Trump are expected to make public announcements this afternoon, following up on an earlier discussion between the two leaders about a range of issues including China, uranium, and ratification of the revamped NAFTA by lawmakers.
Some had speculated that lifting of the Section 232 tariffs which were imposed on “U.S. national security” grounds would be conditional on ratification of the USMCA, but the latest reports indicate that all three countries have instead agreed to begin rolling back the tariffs and all retaliatory countermeasures within the next 48 hours.
Details are scant at the moment, but things to look for are whether the announced agreement includes side commitments pertaining to a stricter interpretation of the rules of origin or moves towards a “melted and poured” standard to avoid problems of dumping by China and others looking to circumvent restrictions, which remains an ongoing concern for many U.S. producers.
We will continue to provide updates on this issue, including implementation dates, conditions, and any possible refund or drawback opportunities.