Trade Cases
Canada Wants Tariffs Lifted Before Ratifying USMCA
Written by Sandy Williams
February 19, 2019
Canada is stepping up its efforts to convince the Trump administration to lift the Section 232 restrictions on steel and aluminum.
After meeting with Republican Sen. Chuck Grassley earlier in the week, Canadian Foreign Minister Chrystia Freeland appealed to U.S. House Speaker Nancy Pelosi on Saturday for help in removing the tariffs.
“We spoke a lot about the [Section] 232 steel and aluminum tariffs and I explained why Canada is so strongly opposed to them and why Canada believes they must be lifted,” said Freeland to reporters.
Discussions with Pelosi and her fellow Democrats included the impact of Canada’s retaliatory measures and the upcoming ratification of the U.S.-Mexico-Canada Agreement (USMCA).
“The Canadian position is that now that we have concluded our trade negotiations with the United States, that is all the more reason why these tariffs ought to be lifted,” she said.
Retaliatory tariffs have had a significant impact on shipments of steel from the United States. Commerce Department statistics show U.S. steel exports to Canada have plunged since Canada’s retaliatory measures went into effect. Shipment volumes that averaged 406,427 metric tons per month fell 38.5 percent in the five months following implementation of Canada’s trade measures.
After meeting with Freeland, Grassley expressed doubt that Canada and Mexico would ratify the USMCA while the tariffs are still in place. Complicating the issue further is the upcoming Canadian elections in October. “Canada isn’t going to be considering anything like this during their election season starting in June, which ends in their October election,” he said. “So it’s very, very important that the White House get on board of doing away with these tariffs so we can get this thing not only before the Congress of the United States, but before the Mexican Senate and the House of Commons in Canada.”
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Steel imports slip 10% from August to September
September marked the lowest month for steel imports so far this year, according to preliminary Census data released by the Commerce Department.
Price on trade: Japan could help fund Nippon Steel’s acquisition of U.S. Steel
Earlier this month, Nippon Steel announced that it is applying for subsidies under the Japanese government’s Green Transformation Promotion Act to expand the company’s electric furnace steelmaking capabilities and to convert from blast furnace to electric furnace operations. As we have said before, transitioning from blast furnace- to electric furnace-based steelmaking is a good thing […]
CRU: What will the US elections mean for economic policy?
In this Insight piece, CRU economists explore the possible economic effects of Trump's and Harris' agendas.
Commerce adjusts duties on large OD welded P&T
The US Department of Commerce is conducting annual administrative reviews of antidumping and countervailing duty (AD/CVD) orders on certain imports of steel pipe and tube.
Canada announces remission process for Chinese steel tariffs
The Canadian government announced a remission process for businesses for recently announced tariffs on Chinese steel and aluminum products and electric vehicles .