MSCI Supports Tariffs Exemptions For North American Trading Partners – Here’s Why
In a report issued last week, the Bank of Canada said the tariffs on metals products imposed by both the Canadian and United States governments would reduce Canadian exports by about 0.6 percent and imports by 0.6 percent and boost inflation by 0.1 percentage point. According to Reuters, the bank also said “the tariffs, along with related uncertainty about U.S. trade policy that hangs over Canada’s export-driven economy, will subtract about 2/3 percent from GDP by the end of 2020.”
These economic repercussions, along with the interconnected nature of the economies of the three North American countries, are two of the reasons that, since President Donald Trump announced his steel and aluminum investigations, the Metals Service Center Institute (MSCI) has repeatedly argued that exports from Canada and Mexico should be exempt from any tariffs. (Click here to read our comments in the steel and aluminum Section 232 investigations.)
It’s also the reason that MSCI asked Canadian Prime Minister Justin Trudeau to hold off on imposing retaliatory tariffs on U.S. metals products. In a letter to Trudeau, MSCI argued, “Businesses in the Canadian and American metals sectors, not to mention consumers in both countries, would be best served if Canada and the United States, along with Mexico, come back to the negotiating table to reach an agreement to end these tariffs, and to reject future tariff threats.”
As a North American trade association, MSCI will continue to make this argument to policymakers in both Canada and the United States.