Trump postpones tariff against Canadian and Mexican goods

The US has temporarily postponed a 25% tariff against imports of Canadian products for at least 30 days, according to Prime Minister Justin Trudeau.

The Canadian government has committed to increasing security measures along its border with the US in an agreement that, for now, allows the nations to avoid a trade war, Kallanish discovers in a Trudeau social media post late Monday.

Trump had said the reason for imposing the tariff on its northern ally is entirely related to what it deems is a failure to thwart the passage of drugs and undocumented people from crossing into the US.

The Canadian Steel Producers Association (CSPA) states that it has led efforts to protect fair trade policies, making the looming 25% tariffs from the US “deeply disappointing,” the association says in a statement.

“We are also concerned that the tremendous effort Canada has taken to safeguard the North American marketplace from unfair steel trade has gone unnoticed. From the enactment of melted-and-poured requirements to the levelling of tariffs on a wide array of Chinese steel products, Canada has demonstrated to the United States its commitment to a tough stance against industrial overcapacity, along with our country’s intention to be the best partner of the United States in defending against unfair practices,” the CSPA contends.

The Canadian steel advocacy organisation criticises the disruptions to steel business operations on both sides of the border and warns that these disruptions will have ripple effects on businesses and citizens in both nations.

“The North American steel industry is highly integrated across the Canadian and US border. With $20 billion in annual steel trade between our nations, these tariffs will cause significant disruption and economic hardship in both Canada and the United States. These disruptions will negatively impact businesses, workers and their families,” states the CSPA.

Earlier Monday, the White House confirmed that Trump would delay new tariffs against Mexican goods, also for 30 days. Before the delays, the 25% tariffs were scheduled to go into effect Tuesday.

Keanin Loomis, chief executive of the Canadian Institute of Steel Construction, says the organisation has observed cancelled contracts for steel as the industry waits to see what happens next, according to a report by the Canadian Broadcasting Corp.

“Faced with uncertainty, local steelmakers and their customers are pausing plans,” Loomis mentions in the report.

Canada’s International Trade and Finance Commission has updated its webpage, specifying what a tariff is, how it is being used against Canada, and the nation’s current measures to mitigate the inevitable impacts. In its update, the commission states that it will hear public comments during a 21-day period on its proposed counter-tariffs on US aluminium and steel exports.

Kristen DiLandro USA

kallanish.com