U.S. drops taxes on Canadian aluminum

U.S. drops taxes on Canadian aluminum
Canada Tariffs graphic - MGN Image (Source: MGN)

WASHINGTON, D.C. (WWNY) - Just as Canada was about to impose its own taxes on U.S. products, the Trump administration reversed course Tuesday and ended a 10 percent tariff on Canadian aluminum.

President Trump imposed the tariff a month ago. At the time, he said Canada was exporting too much aluminum to the U.S.

North country congresswoman Elise Stefanik hailed the reversal.

“Today’s announcement is essential for the regional economy and is crucial to maintaining our cross-border partnership with Canada,” she said in a statement.

Canadian officials said the U.S. decision to drop the 10 percent tariff was not a deal negotiated with Canada, and that Canada had not given up anything.

Deputy Prime Minister Chrystia Freeland said Canada is prepared to impose retaliatory taxes if the tariff is reimposed, according to a report from the Associated Press.

The Hill web site reported the Trump administration is replacing the tariffs with a monthly quota system for how much Canadian aluminum can be exported to the U.S.

According to the Associated Press, the aluminum tariff was unpopular with business and industry because it raised costs for manufacturers that rely on imported aluminum, “while not addressing the real threat to American aluminum producers: massive overproduction by China that drives prices down.”

“Manufacturers throughout the North Country depend on closely-integrated supply chains across the norther border so the imposition of these tariffs would harm our global competitiveness,” Stefanik said in her statement.

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