Canada, Mexico Formally End Retaliatory Tariffs on US
Canada and Mexico each on May 20 ended their retaliatory tariffs on U.S. goods in response to the end of U.S. Section 232 tariffs on steel and aluminum products from the two countries (see 1905170058). General safeguard duties set by each country remain in place but don’t affect U.S. exports.
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Mexico issued a notice in its Diario Oficial on May 20 repealing regulations imposed in June 2018 that set retaliatory tariffs on U.S. steel and agricultural products, including pork, apples, cranberries, cheeses, potatoes and whiskey. The notice left in place provisions of the same regulation that set safeguard tariffs on steel and aluminum from countries with which Mexico does not have trade agreements.
“The tariff elimination agreement between Mexico and the U.S. announced Friday, May 17, was possible thanks to the firm posture maintained at all times by the Secretary of Economy, Graciela Marquez Colin, to not accept quotas as a solution and that the only acceptable solution for Mexico was the elimination of the measure,” the Mexican Secretariat of the Economy said in a May 20 press release. The press release praised the Canadian government for “having maintained a shared vision with Mexico with respect to the desired solution for these tariffs imposed by the U.S. under Section 232.”
The Canada Border Services Agency issued a May 19 customs notice on the development that said that "importers will no longer be required to pay surtax" that were previously required on steel and aluminum and other goods from the U.S.
"When the United States imposed unjustified tariffs on Canadian steel and aluminum, the Government of Canada stood up for our country's steel and aluminum workers, industries, and communities -- imposing reciprocal, dollar-for-dollar countermeasures against imports of steel, aluminum, and other products from the U.S., to encourage the full removal of the U.S. tariffs," the Department of Finance Canada said in a May 20 news release. "Canada stood firm and did not back down until this outcome was achieved on Friday, May 17, when the U.S. announced that it would eliminate tariffs on Canadian steel and aluminum within two days. Canada also agreed to eliminate its countermeasures against the U.S."