United States announces deal with Canada and Mexico to lift retaliatory tariffs
The United States announced an agreement with Canada and Mexico to remove the Section 232 tariffs for steel and aluminum imports from those countries and for the removal of all retaliatory tariffs imposed on American goods by those countries. The agreement provides for aggressive monitoring and a mechanism to prevent surges in imports of steel and aluminum. If surges in imports of specific steel and aluminum products occur, the United States may re-impose Section 232 tariffs on those products. Any retaliation by Canada and Mexico would then be limited to steel and aluminum products.
“This agreement is great news for American farmers that have been subject to retaliatory tariffs from Canada and Mexico. At the same time, the Agreement will continue to protect America’s steel and aluminum industries,” read a release from the office of the U.S. Trade Representative.
USDA Secretary Sonny Perdue said the agreement was a “big win for American agriculture and the economy as a whole. I thank President Trump for negotiating a great deal and for negotiating the removal of these tariffs. Canada and Mexico are two of our top three trading partners, and it is my expectation that they will immediately pull back their retaliatory tariffs against our agricultural products. Congress should move swiftly to ratify the USMCA so American farmers can begin to benefit from the agreement.”
Meat Institute President and CEO Julie Anna Potts said the institute was pleased by the announcement.
“The removal of the metal tariffs restores zero-tariff trade to U.S. pork’s largest export market in Mexico,” she said.
“The 20% retaliatory tariffs on U.S. pork imposed by Mexico as a result of the Section 232 tariffs has been particularly hard on Meat Institute members who harvest and process pork and pork products,” she continued. “Moreover, these tariffs have complicated our efforts to make a supportive case on behalf of the United States – Mexico – Canada Agreement (USMCA). The removal of these barriers will help clear the way to positive and productive conversations in Congress to pass this important trade deal.”
Source: Office of the U.S. Trade Representative, North American Meat Institute