Canadian government lifts retaliatory tariffs on U.S. steel and aluminum – The Globe and Mail

Canadian government lifts retaliatory tariffs on U.S. steel and aluminum - The Globe and Mail
Canadian tariffs on U.S. bourbon, playing cards officially lifted: Morneau
OTTAWA — Canada collected more than $1.27 billion from the retaliatory tariffs on U.S. products over the last year and all of it will go to the Canadian steel and aluminum industry even though the steel trade war with the United States is over.

Canada and the United States reached an agreement Friday to see the U.S. lift the nearly year-old import duties on steel and aluminum President Donald Trump imposed last June arguing the imports threatened national security. Canada had always called the tariffs illegal and absurd and demanded they be lifted immediately.

In this June 20, 2018 file photo, Catoctin Creek Distillery whiskey is on display in a tasting room in Purcellville, Va. American whiskey producers feeling the pain from the Trump administrations trade disputes have gotten a shot of relief with an agreement announced Friday, May 24, 2019 that will end retaliatory tariffs that Canada and Mexico slapped on whiskey and other U.S. products. (AP Photo/Steve Helber, File)

Trump is getting closer to a win on his major new trade deal with Canada and Mexico

Canadas ratification of the new North American trade agreement also hinged on the tariffs coming off.

The tariffs targeting products to have political impact in the states of prominent Republican lawmakers were retaliation for the steel and aluminum tariffs President Donald Trump imposed on Canada almost a year ago.

Canadian retaliatory tariffs on U.S. bourbon and other American products lifted after U.S. kills steel aluminum penalties

That officially happened Monday and as a result Finance Minister Bill Morneau said Canada had also lifted the retaliatory duties Canada imposed on U.S. steel and aluminum and more than 70 other U.S. products including licorice, coffee, sleeping bags and ketchup.

Canadian retaliatory tariffs lifted as U.S. removes steel, aluminum penalties

"The removal of tariffs and countermeasures is a true win-win for everyone involved, and great news for Canadian and American workers, for our communities, and our economies," Morneau said in a written statement.

This morning Morneau issued a statement saying lifting the tariffs on both sides was a "true win-win" for everyone affected.

Canadian retaliatory tariffs on U.S. bourbon lifted as U.S. kills steel aluminum penalties

Trump tweeted late Sunday that U.S. farmers "can begin doing business again with Mexico and Canada."

OTTAWA — Finance Minister Bill Morneau says Canadian tariffs on U.S. bourbon, playing cards and licorice have officially been lifted.

"They have both taken the tariff penalties off of your great agricultural product," Trump wrote. "Please be sure that you are treated fairly."

A Canadian official, speaking on the condition of anonymity because he was not authorized to speak publicly on the matter, said Trumps tweet reinforces to Canada that "our retaliatory tariffs were key to resolving this."

The Canadian tariffs were carefully selected to both match the dollar value of the tariffs Canadian companies were paying to the U.S., as well as to target popular products in states of prominent Republican lawmakers or swing states where voters might voice their displeasure.

That included, for example, Kentucky bourbon from the home state of Senate Majority Leader Mitch McConnell, and pickles, gherkins, lawn mowers and yogurt, which are all big industries in Wisconsin, the state of former House of Representatives Speaker Paul Ryan. Chocolate and toilet paper, key exports from Pennsylvania which is home to Hershey and the Scott Paper Company, were among the swing-state products targeted, as was Florida orange juice.

“With these developments, Canadian and American businesses can now get back to what they do best: working together constructively and supporting good, well-paying middle class jobs on both sides of the border, said Canadian Finance Minister Bill Morneau in a statement. The removal of tariffs and countermeasures is a true win-win for everyone involved, and great news for Canadian and American workers, for our communities, and our economies.”

Canadas tariffs imposed a 25 per cent surtax on U.S. steel imports, and 10 per cent on aluminum and the other 75 listed products. A Finance official said as of April 30, Canada had collected $1.27 billion from the retaliatory measures, but that figure is expected to climb as Canada Border Services Agency gets final reports from Canadian importers.

The President abruptly imposed 25% tariffs on imported steel and aluminum from both nations in March 2018 to gain more leverage as the three countries attempted to renegotiate the North American Free Trade Agreement -commonly referred to as NAFTA.

Canada announced a $2 billion aid package to the steel and aluminum industry to help them weather the impact of the U.S. trade war, including exempting Canadian companies from paying the import duties on steel and aluminum if they couldnt source the product within Canada or had contracts requiring them to import from the United States.

Canada and Mexico lift tariffs against US

Funds were also there to help with work sharing agreements, training and diversifying export markets.

Prime Minister Justin Trudeau indicated Friday that the funds to help the industry are not being erased even though the tariffs have been lifted.

The moves by Canada and Mexico come three days after President Trump struck a deal to exempt both trading partners from U.S. tariffs on steel and aluminum imports, adds the article.

"The financial assistance is still there," he said. "We made $2 billion worth of commitments last summer to support our industry. Were going to continue to look at how the industry can continue to grow and invest."

The economic breakthrough comes days after the US and China exchanged a series of stiff tariffs as a potential trade deal stalled towards the end of negotiations.

Starting Monday, our great Farmers can begin doing business again with Mexico and Canada. They have both taken the tariff penalties off of your great agricultural product. Please be sure that you are treated fairly. Any complaints should immediately go to @SecretarySonny Perdue!

Prime Minister Justin Trudeau walks with U.S. President Donald Trump at the White House in Washington, D.C. on Wednesday, Oct. 11, 2017. Trudeau has told Trump that his threatened tariffs on steel and aluminum imports will not make a new NAFTA deal happen sooner. THE CANADIAN PRESS/Sean Kilpatrick

But the steel and aluminum tariffs were also designed to coerce Canada and Mexico into agreeing to a rewrite of North American free trade pact. In fact, the Canadians and Mexicans did go along last year with a revamped regional trade deal that was to Trumps liking. But the administration had refused to lift the taxes on their metals coming into the United States until Friday.

The Liberal governments overhaul of the patronage system has led to gender parity in government appointments, but new figures show few of those women are in leadership posts and visible minorities are being left out.

Finance Minister Bill Morneau says Canadian tariffs on U.S. bourbon, playing cards and licorice have officially been lifted.

China is our adversary, said Sen. Ben Sasse, R-Neb. Canada and Mexico are our friends. The president is right to increase pressure on China for their espionage, their theft of intellectual property, and their hostility toward the rule of law. The president is also right to be deescalating tension with our North American allies.

The tariffs targeting products to have political impact in the states of prominent Republican lawmakers were retaliation for the steel and aluminum tariffs President Donald Trump imposed on Canada almost a year ago.

Trump still is hoping to use the threat of auto tariffs to pressure Japan and the European Union into making concessions in ongoing trade talks. If agreements are not reached within 180 days, the president will determine whether and what further action needs to be taken, White House press secretary Sarah Sanders said in a statement.

Canada and the U.S. reached a deal Friday to lift those tariffs and they were physically removed today.

This morning Morneau issued a statement saying lifting the tariffs on both sides was a “true win-win” for everyone affected.

The new trade deal – the U.S.-Mexico-Canada Agreement – needs approval from legislatures in the U.S., Canada and Mexico. Several key U.S. lawmakers were threatening to reject the pact unless the tariffs were removed. And Canada had suggested it wouldnt ratify any deal with tariffs still in place.

READ MORE: Clarity and persistence led to the removal of steel, aluminum tariffs: Freeland

Trump tweeted early this morning that U.S. farmers can now begin doing business again with both Canada and Mexico.

Canada’s retaliatory tariffs slapped extra import duties on aluminum and steel coming from the United States but also 75 other products including sleeping bags, toilet paper, soy sauce and ketchup.