Timeline Murky for Lifting US Metal Tariffs

Despite President Trump and others in his administration pledging steel and aluminum tariffs would be lifted for Mexico and Canada when a new NAFTA accord was signed, no such move came after the three countries agreed to the U.S.-Mexico-Canada Agreement (USMCA). U.S. officials now say signing the new USMCA is not enough. They also want Canada and Mexico to agree to new quotas on their metals exports to the U.S. before the U.S. will lift the Section 232 tariffs. Canada is the largest foreign supplier of steel to the U.S., with a 20 percent import share. The U.S. goal of quotas would be to limit steel supply to keep domestic steel prices high. Meanwhile, the U.S. dairy sector has consistently stressed importance of lifting the metal tariffs on Canada and Mexico. While the USMCA opens a slightly larger share of the Canadian dairy market to U.S. producers, Mexico remains the largest destination for U.S. dairy exports. U.S. dairy products face a 25 percent tariff in Mexico imposed in retaliation for the steel and aluminum tariffs. The small gains USMCA brings U.S. dairy in Canada may not make up for the export losses to Mexico, a point backed up in a November analysis by the Farm Foundation. Concerns over the uncertainty and ongoing hardship associated with the metals tariffs has some in Congress looking at legislation that would rein in President Trump's ability to implement Section 232-related (national security) trade constraints.