Published: Mon, May 20, 2019

Trump announces deal with Canada and Mexico at National Association of Realtors

Trump announces deal with Canada and Mexico at National Association of Realtors

U.S. President Donald Trump, Mexican President Enrique Pena Nieto and Prime Minister Justin Trudeau at the USMCA signing ceremony on November 30, 2018 in Buenos Aires, Argentina.

Cecilia Malmstrom, European Commissioner for Trade, told Bloomberg earlier this week that the EU was already considering which United States products to target with higher levies if Mr Trump's administration went ahead with the move. "They were hurting Canadian consumers, Canadian workers and American consumers and American workers". They were big suppliers to Mexico.

This comes as the solution to the trade dispute between the United States and China seems farther away, due to the fresh tariffs imposed by the USA on Chinese imports amounting to a whopping Dollars 200 billion.

"It's a great day for us", said Suché.

Trump extended the tariffs on steel and aluminum to Canada and Mexico on June 1.

Most US market participants expect the Midwest premium to decline with Canadian supply able to enter the US duty-free. Meng, who is caught up in an American indictment that accuses Huawei of violating USA sanctions against Iran, is awaiting an extradition hearing to determine whether she will be sent stateside to face charges.

The two countries will eliminate the tariffs on steel, aluminum and other products within 48 hours, the USA and Canadian governments said in a joint statement.

Carmakers, which have announced hundreds of millions of dollars in higher US costs due to the tariffs, praised the deal and said it brought USMCA passage a big step closer.

Canada and the U.S. will now work together to get the U.S. -Mexico-Canada Agreement (USMCA), known colloquially in both countries as the "new NAFTA", approved in the coming weeks, said Trudeau.

The White House's announcement of a delay in determining whether to impose levies on foreign automobiles gave a temporary reprieve to global automakers and auto suppliers, which had been bracing for punishing tariffs on millions of cars imported into the United States each year. Depending on what shape those rules take, that could mean headaches for companies that import specialty steel from outside the NAFTA region to process it into other products, Uzcjo said. "If the importing party takes such action, the exporting country agrees to retaliate only in the affected sector..." the statement notes.

The United States, Canada and Mexico on Friday announced that they would be scrapping tariffs on each other's steel and aluminum products, effective in 48 hours. "In monitoring for surges, either country may treat products made with steel that is melted and poured in North America separately from products that are not", the statement reads.

India, the world's biggest buyer of U.S. almonds, on June 21, 2018 raised import duties on the nuts by 20% and increased tariffs on a range of other farm products and USA iron and steel, in retaliation for United States tariffs on Indian steel. It comes as separate talks for a bilateral trade deal between the US and China have soured.

Trudeau held a media availability at the Stelco steel plant in Hamilton, Ont., this afternoon where he confirmed a deal had been reached.

"There was no one breakthrough moment". "It's literally just an additional step [to get the products in]", Santangelo said. Jean Simard, president and CEO of the Canadian Aluminum Association, says the deal will put "an end to the harmful uncertainty that is impeding the development of the Canadian and North American aluminum industry".

"This is pure, good news", the prime minister said of the deal, before thanking everyone who had worked on the agreement - including the labour unions. "Canada has been America's most steadfast ally for more than 100 years, and our long-standing partnership and closely linked economies make us more competitive around the world and improve our combined security".

By imposing the tariffs on steel and aluminium and threatening ones on autos, Trump was relying on a rarely-used weapon in the United States trade war arsenal - Section 232 of the Trade Expansion Act of 1962 - which lets the president impose tariffs on imports if the Commerce Department deems them a threat to national security.

Apart from that, a thoroughly optimistic Senior Mexican official said later on Friday (May 17th) that Mexico and Canada would lift their retaliatory tariffs on U.S. imports, once the deal was announced and implemented.

By removing the metals tariffs on Canada and Mexico, Trump cleared a key roadblock to a North American trade pact his team negotiated previous year.

Friday's tariff agreement, which enlists Canada's help in policing the North American steel market against Chinese dumping, could be seen as pushing Canada even deeper into America's corner. Beyond domestic use, that means massive exports and the chance of the metal entering the US through other countries even if not directly because of imports from other sources. It had 12% of USA auto sales in 2017.

February 21: David MacNaughton, Canada's ambassador to the US, declares publicly that he's confident the tariffs will be lifted "in the next few weeks" - comments he later acknowledges were aimed at lighting a fire under recalcitrant USA negotiators. "That's what workers asked for". Scheer told reporters he'll be looking closely at the details.

Tariffs of up to 25% on imported cars and vehicle parts were under consideration.

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