Canada and the U.S. have reached a deal to cancel U.S. tariffs on Canadian aluminum and steel.
The measure will see tariffs of 10% on aluminum and 25% on steel eliminated in two days by the U.S. For its part, Canada will remove all retaliatory tariffs on U.S. goods.

“Today’s decision by the United States to remove tariffs on Canadian steel and aluminum is terrific news for Canadian steel and aluminum workers, their families, and many communities across the country,” stated Canadian Prime Minister Justin Trudeau in a release.

Under Section 232 of the Trade Expansion Act of 1962 the president can impose tariffs under national security concerns. Both countries will also drop all pending litigation regarding Section 232  at the World Trade Organization.
The two countries will also implement measures that prevent the transshipment of aluminum and steel made outside of Canada or the U.S. to the other country. They will also prevent the importation of aluminum and steel that is subsidized or sold at prices that are below fair market value.
Further, trade in aluminum and steel between the two countries will be monitored for surges and products made with steel that is melted and poured in North America will be treated separately from products that are not.
If there is a surge in steel or aluminum products, beyond historic volumes, the importing country can ask for consultations with the exporting country. After talks have ended, the importing country can import duties of 25% on steel and 10% on aluminum “in respect to the individual products where the surge took place.”
If the importing country imposes those tariffs then the exporting country can retaliate in the affected sector with products that contain aluminium or steel.

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