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Canada and the United States reached an agreement on May 17th to eliminate all steel and aluminum tariffs. Last June, the US put a 25 percent tariff on imports of steel and a 10 percent tariff on imports of aluminum, citing “national security” concerns.  In response to the US pull-back, Canada will be removing its retaliatory tariffs on other goods and will end legal actions at the World Trade Organization.  Prime Minister Justin Trudeau made the announcement in Hamilton, Ontario, after a phone all in the morning with President Donald Trump.

"There was no one breakthrough moment ... Lots of conversations with the president over the past week and an understanding as well that these tariffs were harming workers and consumers on both sides of the border," Trudeau said.  "As we look at moving forward with the new NAFTA, it didn't make a lot of sense to continue to have tariffs on steel and aluminum between our countries. That's where we got to."

The two countries have agreed to implement measures that prevent the dumping or unfair subsidization of aluminum and steel and prevent the transhipment made outside of Canada or the United States to the other country. This is good news for HRAI members, especially manufacturers who rely on steel and aluminum for the manufacturing of HVACR equipment.

HRAI has also been informed that, despite recent commentary predicting the deal's demise, the USMCA is showing some signs of life.  Following a meeting between USTR Robert Robert Lighthizer and Speaker Nancy Pelosi this week, Pelosi's team indicated it was a positive meeting and that they were working towards a 'yes' on the deal.

HRAI will continue to monitor the tariffs and free trade discussions as they unfold.

For more information, contact Martin Luymes at 1-800-267-2231 ext. 235 or email mluymes@hrai.ca.