Photo Credit: The Canadian Press

By The Canadian Press

End to Tariffs

Deal reached between Canada and the US to drop steel and aluminum tariffs

May 17, 2019 | 1:14 PM

HAMILTON, ON – Canada’s year-long standoff with the Trump administration over punitive U.S. steel and aluminum tariffs is finally over, removing a key hurdle in efforts to ratify the new North American trade pact.

Global Affairs Canada says the tariffs will be removed within two days.

Canada has also agreed to drop all of its retaliatory measures and legal actions at the World Trade Organization.

Prime Minister Justin Trudeau made an unscheduled, last-minute trip to Hamilton, Canada’s steel-manufacturing capital, where he confirmed the breakthrough with Foreign Affairs Minister Chrystia Freeland and Finance Minister Bill Morneau.

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“This is pure good news,” said Prime Minister Justin Trudeau at his stop at the Stelco plant.

The deal applies to the tariffs the U.S. imposed last June by citing national security — 25 per cent on imports of steel and 10 per cent on aluminum — as well as Canada’s retaliatory tariffs on steel, aluminum and as other consumer products.

Canada has long argued the tariffs are illegal. As part of the deal, the Trudeau government has agreed to end its legal case against the U.S at the World Trade Organization on the section 232 tariffs.

The deal also includes a monitoring system to watch out for any potential surges in the metals markets.

Prime Minister Trudeau spoke to U.S. President Donald Trump earlier today, their third conversation this week. The Prime Minister’s Office said the pair discussed the steel tariff issue.

Word of the agreement began to trickle out on Friday morning amid reports that U.S. negotiators had backed off long-standing demands for a hard limit on imports of Canadian steel and aluminum, part of an effort to keep cheap Chinese product out of the country.