WASHINGTON — On May 17, Canada, Mexico, and the U.S. announced plans to remove Section 232 tariffs on steel (25%) and aluminum (10%) for Canada and Mexico by May 19. Among other things, the agreement aims to "prevent the importation of aluminum and steel that is unfairly subsidized" and to "prevent the transshipment" of these metals. The countries will establish a process to monitor aluminum and steel trade among them.
If the tenets of the agreement are not upheld, the agreement allows for tariffs to be imposed.
The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) opposes tariffs, which it views as a tax, and supports this action from the U.S. government. Removal of the Section 232 tariffs also increases the likelihood of all three parties passing the United States-Mexico-Canada Agreement (USMCA).
The U.S. imposed Section 232 tariffs on Canada and Mexico (steel, aluminum) on June 1, 2018 and both countries retaliated by implementing their own sets of retaliatory tariffs. With this agreement, Canada and Mexico will eliminate these retaliatory tariffs.
Publication date: 5/21/2019