United States announces it is dropping tariffs on Canadian aluminum

United States announces it is dropping tariffs on Canadian aluminum

"Accordingly, the United States will modify the terms of the 10 per cent tariff imposed in August on imports of Canadian non-alloyed unwrought aluminium".

"The United States will consult with the Canadian government at the end of the year to review the state of the aluminum trade in light of trade patterns during the four-month period and expected market conditions in 2021".

"Canada has been taking advantage of us", Trump said in a speech last month, when he first announced the tariffs would be re-imposed.

Ms Freeland described the United States move as "unilateral" and Canada had not agreed to abide by any import thresholds.

Freeland rejected suggestions that Canada has agreed to USA -imposed quotas, saying this is not a negotiated deal between the two countries.

While USTR announced the removal of the tariff, it said it "expects" shipments of non-alloyed, unwrought aluminum from Canada will be no greater than 83,000 tons in September and November and no greater than 70,000 tons in October and December, effectively signaling a quota.

"What has happened today is that the United States has chosen to unilaterally lift its tariffs on Canadian aluminum exports to the United States..."

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The past several weeks have seen a resurgence in COVID-19 across Canada after a summer lull, which Trudeau said is a reminder that Canada is "not out of the woods yet".

The government had already issued a list of possible products on the target list, including beverage cans, washing machines and golf clubs.

New thresholds set by the USA would limit imports of non-alloyed, unwrought aluminum to 83,000 tonnes in September, 70,000 tonnes in October, 83,000 tonnes in November, and 70,000 tonnes in December.

The trio wrote to Trump asking him to consider the "negative consequences" for consumers and American suppliers.

After the NAFTA deal was reached and the last steel and aluminum tariff dispute was settled, the two countries had agreed not to engage in broad-based tariff wars but reserved the right to take measures in specific industries. The U.S. has for years claimed that Canada has been "dumping" high volumes of aluminum into the U.S., which has in turn depressed prices enjoyed by American upstream producers.

Ahead of the USA backing down, NDP Leader Jagmeet Singh said that the government should be taking a more proactive approach to avoid similar instances in the future.

"At the same time, as we shift more of our activities indoors, we will need to increase our awareness of COVID-19 risk factors in reopened settings". The Trump administration later exempted certain countries, including Canada, from the levies, which were also controversial within the US.

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