U.S. trade negotiators have reached a deal with officials from Canada and Mexico to lift the 25 percent steel and 10 percent aluminum tariffs on imports from those countries. The steel and aluminum tariffs have been a sticking point from Congressional leaders in trying to get the U.S., Mexico, Canada Agreement (USMCA) approved by Congress, however removing the tariffs does not guarantee the measure will be approved this year.
The tariffs will no longer be applied to imports from Canada and Mexico starting over the weekend.
Some trade policy experts were worried the deal would cap the amount of imports from Canada and Mexico, however the final deal does not contain quotas. The deal does require both countries to prevent other countries, especially known dumpers of cheap steel and aluminum, from sending product through Canada and Mexico to avoid the tariffs.
The addition of tariffs on steel and aluminum put in place last year has increased prices on many HVACR products and caused retaliatory tariffs from our trading partners. With the removal of the tariffs from our largest source of steel imports, we are one step closer to returning to price stability that has been interrupted by various trade disputes in recent years.
As always, feel free to reach out to Alex or me if you have any questions about this process or the tariffs themselves.
Vice President of Government Affairs