International. Canada, Mexico and the United States announced plans a few days ago to eliminate from May 19 the Section 232 tariffs on steel (25%) and aluminum (10%) for Canada and Mexico.
Among other things, the agreement aims to "prevent the importation" of aluminum and steel that is unfairly subsidized "and to "prevent the transshipment" of these metals. Countries will establish a process to monitor trade in aluminum and steel between them.
If the principles of the agreement are not upheld, the agreement allows tariffs to be imposed.
The Air Conditioning, Heating and Refrigeration Institute (AHRI) opposes the tariffs, which it considers a tax, and supports this action by the U.S. government. The elimination of Section 232 tariffs also increases the likelihood that all three parties will approve the United States-Mexico-Canada Agreement (USMCA).
The U.S. imposed Section 232 tariffs on Canada and Mexico (steel, aluminum) on June 1, 2018 and both countries retaliated by implementing their own sets of retaliation tariffs. With this agreement, Canada and Mexico will eliminate these retaliatory tariffs.
