US Reaches Deal With Canada to Lift Aluminium and Steel Tariffs in 48 Hours

Washington and Ottawa issued a joint statement, striking a deal on steel and aluminium tariffs elimination in 48 hours. The US will lift the tariffs, while Canada vowed to cease all retaliatory measure on the issue. At the same time, both countries agreed on preventing imports of steel and aluminium that are "unfairly subsidised" or "sold at dumped prices".

"The United States and Canada agree to eliminate, no later than two days from the issuance of this statement: All tariffs the United States imposed under Section 232 on imports of aluminium and steel products from Canada; and all tariffs Canada imposed in retaliation for the Section 232 action taken by the United States", the release said.

Commenting on the issue, Canadian Prime Minister Justin Trudeau noted that the removal of tariffs is "terrific news", adding that now main obstacles to ratify the United States–Mexico–Canada Agreement (USMCA), that was set to replace the North American Free Trade Agreement (NAFTA).

The Washington Post previously reported about the deal, noting that the US and Mexico have reached the same accord on tariffs.

Strategist: American Producers, Consumers to Pay for US-China Tariff Tit-for-Tat

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In late March, Washington imposed 25 per cent tariffs on steel imports and 10 percent on aluminium imports. In respect to the European Union, Mexico and Canada, this decision was scheduled to come into effect on 1 June. President Trump urged Canada and Mexico to ban Chinese steel from entering the US through their territory, stating that the foreign metals posed a threat to national security.

In 2018 the US imported $191.7 billion in passenger vehicles and light trucks, with more than $90 billion of these imports coming from Canada and Mexico, according to Bloomberg.