The governments of the United States and Canada have been working to settle their trade dispute over the past months. The Trump administration announced on Tuesday that it would eliminate a 10 percent import tax on Canadian aluminum, provided that aluminum imports from Canada remain limited. Then Canada announced that it would not take action on previous threats of retaliation.
The US government stated that the decision to raise tariffs came after consultations with the Canadians, which found that US imports of Canadian aluminum would be cut in half from September through December of this year.
US President Donald Trump imposed tariffs on aluminum last month after increasing imports across the northern border of the United States. Canadian Trade Minister Mary Ng said Tuesday’s US announcement ends a “very difficult” few months for Canadian producers.
“Canada has not recognized anything. We reserve the right to take countermeasures if the US government decides to re-impose tariffs on Canadian aluminum products,” Minister Ng said at a press conference.
One-sided decision
USTR says it expects the United States to import 70,000 to 83,000 tons of Canadian aluminum per month through December. If that amount is higher than 5 percent in a month after that, the United States will retroactively impose a 10 percent tax on imports that month, the Office of the United States Trade Representative said.
This is a unilateral decision, according to Canadian Deputy Prime Minister Chrystia Freeland’s answers to questions about the quota. This is not a bargain. “We did not negotiate with the United States for a quota agreement,” she said.
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