U.S. Tariff Relief Pending

Tariffs

CBJ — Relief is coming for Canada regarding the restrictive tariffs placed on steel and aluminum by the U.S. government.

The U.S. is looking to devise a method whereby Canada and Mexico won’t be directly penalized with the taxes, while at the same time preserving the gains of those tariffs.

U.S. Trade Representative Robert Lighthizer has been at the centre of the plan all along, and it was he who hammered out an agreement with Canada and Mexico to what is now known as the USMCA, designed to replace NAFTA.

“What I’m trying to do is a have a practical solution to a real problem,” said Lighthizer. “We want to get rid of tariffs on these two, let them maintain their historic access to the U.S. market, which I think will allow us to still maintain the benefit of the steel and aluminum program.” He made those comments before the U.S. Senate Finance Committee in Washington D.C. at a hearing about the World Trade Organization.

U.S. President Donald Trump imposed tariffs — 25% on steel and 10% on aluminum — back in 2018 on what was described as “national security grounds” — which unto itself was met with raised eyebrows.

Tariffs in both Canada and the U.S. have endured disrupted supply chains and added extra costs for consumers and businesses across a wide range of industries.

@CanBizJournal

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