On May 17^th, the US made dual announcements lifting Section 232 tariffs on Canadian steel and aluminum products, as well as Mexican metal products.

Here’s what we know:

US – Canada Section 232 Tariffs

US and Canada announced a rollback of 25% tariffs on Canadian steel and 10% tariffs on Canadian aluminum and promised stricter coordination and enforcement of transshipments between the two countries. Canada has indicated its intention to lift its retaliatory tariffs on US products in return, which comes as a relief to American metal, agricultural and food producers.

The US and Canada both promised to roll back all tariffs within 48 hours. 

Both Canada and the US also agreed to monitor any future surge in steel and aluminum exports to determine if additional tariffs are warranted. Both will treat aluminum or steel products poured or melted within the NAFTA region differently than those poured overseas, but produced within the NAFTA region.

The US and Canada agreed to reinstate the 25% steel tariffs and 10% aluminum tariffs should any discussions regarding surge increases prove unfruitful for either country. However, both countries also agreed to restrain from further tariffs.

US – Mexico Section 232 Tariffs

In a similar announcement, the US agreed to drop Section 232 tariffs with Mexico. Mexico promised to lift its retaliatory tariffs on US products, which will aid the US pork, dairy and metal producers targeted by the duties.

The US agreed to lift tariffs within 48 hours; Mexico did not release a timeline for its tariff rollback.

If you have any questions about the roll back of Section 232 duties or would like to discuss your options as an importer please reach out to us at [email protected].

Shapiro will continue to monitor the situation and provide updates as they become available.