U.S. hits Canada with steel tariffs

May 31, 2018

The tariffs on aluminum and steel come into effect at midnight tonight

By Diego Flammini
Staff Writer
Farms.com

After a two-month exemption, Canada will face charges of 25 per cent on steel exports and 10 per cent on aluminum exports to the U.S. as of midnight tonight.

Mexico will also face similar fees.

"As to Canada, Mexico, you will recall that the reason for the deferral had been pending the outcome of the NAFTA talks," U.S. Commerce Secretary Wilbur Ross told reporters Thursday morning, CBS News reports. "There is no longer a very precise date when they may be concluded and therefore (Canada and Mexico) were added into the list of those who will bear tariffs."

The U.S. imports about 17 per cent of its steel from Canada, worth about $5 billion annually.

Prime Minister Trudeau and Minister of Foreign Affairs Chrystia Freeland are expected to address the tariffs and possible retaliations around 1:30 p.m. EST today.

Mexico has already announced retaliatory measures, some of which include taxing ag products.

The country is imposing “equivalent” tariffs on pork legs, apples, grapes and cheese. U.S. steel exports to Mexico will also face import duties. And they will remain in place until the U.S. reverses its decision, Mexico’s economy ministry said, Reuters reports.

The European Union (EU) will also experience the same tariffs as Canada and Mexico.

And the EU has already outlined that it may target ag goods for any retaliatory measures.

EU officials said in March the 28-country block may consider a 25 per cent tariff on U.S. corn in response to the aluminum and steel taxes.

U.S. kidney beans, rice, peanut butter, cranberries, orange juice, bourbon, cigars and tobacco could also face import charges.

"The EU believes these unilateral US tariffs are unjustified and at odds with World Trade Organisation rules. This is protectionism, pure and simple," Jean-Claude Juncker, president of the European Commission, said in a statement today.

Farms.com has reached out to the Agricultural Manufacturers of Canada, as well as Canadian trade and ag ministers for comments on the tariffs.

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