Published: Mon, May 20, 2019
Markets | By Otis Pena

As US ends tariffs, some of Canada's Conservatives wary of shaky deal

As US ends tariffs, some of Canada's Conservatives wary of shaky deal

President Donald Trump on Friday announced a deal to lift USA tariffs on steel and aluminium imports from Canada and Mexico that had created friction between the neighbours and blocked a new North American free trade agreement.

The two countries have also agreed to a process "for monitoring steel and aluminum trade between them".

"Now that we've had a full lift on these tariffs we are going to work with the United States on timing for ratification, but we're very optimistic we're going to be able to move forward well in the coming weeks", he told reporters.

Both Canada and Mexico argued for 14 months that their metals industries posed no security threat as their economies are integrated with the United States, and challenged the tariffs before the World Trade Organization. Meanwhile, the U.S. is the biggest buyer of aluminum from Canada, accounting for 84 percent of its aluminum exports.

Chris Swonger, president and CEO of the DISCUS, thanked The US government for securing a more amicable deal with "two of our largest and most important export markets".

US steelmakers and aluminum producers rebounded off Friday's lows on optimism that the measures will prevent excess supply from flooding their domestic markets.

While the tariffs helped many U.S. steel and aluminum makers, the retaliatory tariffs hurt other sectors of the United States economy, such as agriculture.

Trudeau offered a shout-out to Canadian unions for their support, and said it helped the government hold firm to usa demands that it submit to quotas before lifting the tariffs.

Buttigieg slams Trump, wins over audience at Fox News town hall
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Officials from Canada and Mexico had been adamant that they would not ratify the new US-Canada-Mexico Agreement, signed by leaders of all three countries late previous year, until the metal tariffs were removed.

Senate Republicans, including Sen.

The dropping of the controversial tariffs ends a bitter dispute between the two countries and removes a key obstacle to ratifying the new North American trade pact. Several key US lawmakers were threatening to reject the pact unless the tariffs were removed. "These tariffs didn't make sense around national security". The Mexicans and the Canadians went along previous year with a revamped regional trade deal that was to Trump's liking.

Prices struck at to raise tariffs on aluminum and steel imports from Mexico and Canada, the three authorities said, eliminating a significant barrier to acts of a European American trade pact. "If agreements are not reached within 180 days, the president will determine whether and what further action needs to be taken", White House press secretary Sarah Sanders said in a statement. However, there are signs that opposition may be dwindling: House of Representatives Speaker Nancy Pelosi, widely seen as holding the fate of the agreement in her hands, sent positive signals about her party's desire to "get to Yes" after a "productive meeting" earlier this week with U.S. Trade Representative Robert Lighthizer.

Canada has vehemently refuted those claims, with Freeland repeatedly characterizing the USA position as absurd.

Unlike his confrontation with China, Trump is virtually alone in favoring tariffs on all imported cars.

Cameron spoke to President Trump about a deal to end the tariffs around midday, according to Cameron Ahmad, Trudeau's director of communications.

"We had a meeting this week with folks from the USA embassy who are involved in these issues", he said. But with members in Canada, the union does not back the president's global approach, which would interfere with border-crossing North American supply chains. "I'd say this is a rare piece of good news on the trade front". The deal does not refer to quotas, which US negotiators insisted upon, but Canadian officials fought against. S. with an additional $158.8 million of parts, up 9.4 percent over the same period.

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