UPDATE 2-Canada pushes for permanent tariff exemption; industry worried

Published 2018-05-01, 01:25 p/m
© Reuters.  UPDATE 2-Canada pushes for permanent tariff exemption; industry worried

(Recasts with foreign minister's comments)

OTTAWA, May 1 (Reuters) - Canada will push for a permanent exemption from U.S. steel and aluminum tariffs but the U.S. administration's decision to postpone them is a "step forward", Canadian Foreign Minister Chrystia Freeland said on Tuesday.

Canada has argued that the tariffs, which had been set to go into effect on Tuesday, would hurt jobs in both countries.

The Trump administration said on Monday that the 25 percent tariff on steel imports and 10 percent tariff on aluminum imports from Canada and Mexico would be suspended until June 1. night's decision is certainly a step forward," said Freeland to reporters. "Canada will continue to work for a full and permanent exemption."

Freeland said it is "inconceivable" that Canada could threaten U.S. national security. The tariffs are based on a 1962 U.S. law that allows safeguards based on "national security."

Speaking on Monday before the delay announcement, Canadian Prime Minister Justin Trudeau said the tariffs were a "very bad idea" guaranteed to disrupt trade between the two nations. tariffs, as well as Trump's insistence that Canada and other nations accept the idea of import quotas, look set to further complicate slow-moving talks to update the North American Free Trade Agreement.

The influential auto lobbies in Canada and Mexico are upset by new U.S. proposals for increasing NAFTA's regional content for vehicles produced in the three member nations of the 1994 trade pact. Aluminium Association of Canada on Tuesday said the U.S. move to put off a decision would only increase uncertainty affecting the industry worldwide.

"Nothing less than a permanent and total exemption is required as soon as possible," Jean Simard, the association's president, said in a statement.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.