Business network CNBC, citing two informed sources, is reporting that the United States has reached a deal to lift existing steel and aluminum tariffs involving Canada and Mexico imports. This development is tied to removing a key obstacle in achieving ratification of the recently negotiated United States Canada Mexico Trade Agreement (USMCA).
According to the report, the United States could announce the removal of such tariffs as early as today. What remains unclear is whether import quotas or other measures will remain in-place.
This news, if it comes to pass, is a positive development for North America based multi-industry supply networks, especially aerospace, automotive and industrial equipment related.
This lingering steel and aluminum tariffs, imposed as 25 percent on steel, and 10 percent on aluminum imports. were obviously becoming an impediment in achieving tri-lateral ratification of the new trade pact among legislative bodies of each country. Reportedly, President Trump spoke directly to Canadian Prime Minister Justin Trudeau regarding this agreement, with speculation that Trump wanted to insure that steel currently imported from China via Canada would not make its way into North America supply chains.
Additional hurdles remain in achieving overall ratification and the timetable is set for early July and August, before major individual legislative bodies adjourn for summer recess.
We anticipate other news and information to follow.
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