US, Canada and Mexico reached trilateral agreement on September 30, replacing the previous North American Free Trade Agreement (NAFTA). United States steel and aluminum tariffs remain for Canada and Mexico.
The new agreement, called United States-Mexico-Canada Agreement (USMCA), “will give our workers, farmers, ranchers and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region,” said US Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland.
The agreement has been praised by trade groups, including the American Iron and Steel Institute, National Association of Manufacturers and Steel Manufacturers Association.
Of course, there are still disappointed parties. Because the Section 232 tariffs on Canada and Mexico were not removed. The tariffs have increased aluminum and HRC prices to multi-year highs.
It was hoped the United States-Mexico-Canada Agreement (USMCA) would resolve the Section 232 tariffs. But US Commerce Secretary Wilbur Ross has stated that the tariffs are a separate issue from USMCA.
One particular issue related to the tariffs, concerns our national defense. Because steel and aluminum is so important to our defense industry, these tariffs might remain for some time. President Trump has made it a priority to correct past trade policies, which are unfair to the United States.
With a strong and growing economy, it is apparent Trump’s business experience is benefiting the country. So if the tariffs remain in place, there is a good reason for them to remain so.
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