What you need to know about Aluminum & Steel tariffs
The U.S. has made a deal to lift tariffs on both Steel and Aluminum imported from Canada and Mexico. It prevents subsidized Chinese steel from being shipped to the U.S.
President Donald J. Trump said to the National Association of Realtors that the deal should help lawmakers to ratify the new United States-Mexico-Canada Agreement (USMCA).
Tariffs for steel and aluminum are currently 25% and 10%. The agreement aims to eliminate the practice of transshipment. This deal will allow the U.S. the right to reconstitute tariffs if there isn't enough done to prevent illegal imports.
Since we are removing the tariffs, Canada will remove their tariffs on our goods in retaliation and drop all pending litigation in the World Trade Organization related to the tariffs. Mexico is also doing the same and will monitor the trade of metals in the U.S. Mexico also said it would set up measures to stop unfair trade practices in the aluminum and steel markets.
Everything has a challenge and in this case the Democrats have concerns about environmental and labor provisions in USMCA. Mexico has passed a labor law last month in part to address those concerns. The White House believes that an escalation of the trade war with China will damage both businesses and consumers. However, with this new deal, there is hope that perhaps one will be made with China in the future.