USA tariffs on steel and aluminum in Canada may be canceled

The tariff cancellation comes amid rumors that Canada may refuse to ratify a new trade deal if tariffs are in effect.

The US is likely to remove the steel and aluminum tariffs imposed on Canada. According to David McNaughton, Canada's ambassador to the US, tariffs are likely to be lifted in the next few weeks. It should be noted that the Trump administration imposed a 25 percent steel tariff and a 10 percent aluminum tariff last March, citing national security concerns. The Canadian government aggressively pushed for tariff abolition.

The US originally exempted Mexico and Canada from tariffs as soon as they were introduced. However, the US lifted the exemptions to put pressure on countries during negotiations for a new US-Mexico-Canada (USMCA) trilateral trade agreement. The US administration has not yet reinstated the benefits even after the completion of negotiations with the USMCA, despite requests from trading partners and the business community.

The tariff cancellation comes amid rumors that Canada may refuse to ratify a new trade deal if tariffs are still in effect. In addition, the retaliatory tariffs imposed by Canada on various American-made goods are believed to pose serious problems for American companies, thereby increasing pressure to end the tariffs.

Meanwhile, Ontario Prime Minister Doug Ford noted that the US government's tariffs on steel and aluminum are doing the US more harm than Canada. Speaking at an event hosted by the Canadian American Business Council, Ford warned that the US is actually losing 16 jobs for every job it creates.