Canada, U.S. Continue Tariff Discussions
As Connecting the Dots reported previously, the new trade agreement between the United States, Canada, and Mexico does not address the U.S. Section 232 steel and aluminum tariffs of the tariffs Canada placed on U.S. products in retaliation. Since the trade agreement was announced, officials from the three countries have been in discussions about how to deal with the tariffs.
According to Politico, one option is to replace the tariffs with a system of quotas. Reuters also noted last week that the top trade negotiator in the incoming Mexican government said the United States is seeking quotas. As a reminder, the Metals Service Center Institute (MSCI) earlier this year sent a letter to both Prime Minister Justin Trudeau and President Donald Trump asking them to keep lines of communication open until there is a deal between the two countries and Mexico.
In related news: the United States also reportedly has asked the World Trade Organization to investigate retaliatory steel and aluminum tariffs put into place by tariffs by China, the European Union, Canada, and Mexico.