Finally, US Canada reached a deal for lifting tariffs on steel & aluminium. Both the sides are agreed to lift the tariffs within two days. the new agreement indicates the ratification of USMCA signed in 2018.
Both the nations announced that 25% tariffs on steels and 10% tariffs on aluminium import will end in 48 hours. Expectedly, the US & Mexico will make the same announcement soon.
The two countries will regularly inspect imports. If one of the nations is buying too much then after the consultation, the nation can again imply the tariffs.
But, the agreement does not include information of quotas related to purchasing of steel & aluminium.
Notably, the tariffs were the main obstruction in permitting the US-Mexico-Canada Agreement (USMCA) signed in 2018. Now, it replaced the North American Free Trade Agreement (NAFTA).
Along with that, Mexico & Washington also announced an agreement to lift levies on steel and aluminium. Three of the countries will ask their individual government to approve the USMCA.
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After the US-China trade deal ended without any agreement. Now the US is looking forward to making a deal with closer nation.
The imposed tariffs were the foremost hurdle in the agreement of the three countries. US president Donald Trump loves the tariffs so much that he himself called him ‘tariff man’.
On Friday, Trudeau said, “These tariffs were harming workers and consumers on both sides of the border. As we look at moving forward with the new NAFTA, it didn’t make a lot of sense to continue to have tariffs on steel and aluminium between our countries.”
The Conservative Party expressed broad support for the text Canada signed last Nov. 30. There’s little reason to conclude it could not be ratified in Canada even if the government changes hands next fall, but Trudeau’s current Liberal government may prefer that the deal it negotiated be ratified on his watch.
Trump concluding from findings that US carmakers are unable to make much revenue for investing in R & D. However, the report is not published yet.
He said, “The lag in R&D expenditures by American-owned producers is weakening innovation and, accordingly, threatening to impair our national security.”
In addition, The White House is going to take more time of 6 months for trade talks with the European Union & Japan.
After the 6 months, the US will decide whether to involve in trade talks with EU & Japan or not.
