US, Canada lift steel, aluminum tariffs pressuring China

US, Canada lift steel, aluminum tariffs pressuring China

President Donald Trump is delaying any decision to impose auto tariffs on vehicle and auto part imports, deciding against ratcheting up trade disputes or impacting talks with European nations and Japan ahead of his upcoming G20 summit in Osaka.

"The two leaders discussed the United States' Section 232 tariffs on steel and aluminum and Canada's retaliatory tariffs", the Prime Minister's Office said in a readout of the call.

The U.S. has also come to an agreement to lift its steel and aluminum tariffs on Mexico. "That has been a very important position for Canada".

US President Donald Trump imposed a 25 percent tariff on steel imports and 10 percent one on imported aluminium.

The hostilities between the world's two biggest economies have weighed heavily the past couple of weeks on the USA stock market, threatening a long rally that Trump touted as a vindication of his economic policies.

"Companies that rely on non-North American steel and aluminum in their NAFTA/USMCA region supply chains are highly likely to be impacted by these discussions", he said.

The tariffs have sparked the largest trade war in a generation and set the U.S. against all its major trading partners including the European Union, China, Canada and Mexico.

Senate Republicans, including Sen.

Trump, speaking to realtors in Washington, called the pact "a fantastic deal for our country" and said Congress would hopefully approve the USMCA quickly.

OTTAWA -Canada and the United States have reached an agreement to lift steel and aluminum tariffs, a year after they were first imposed, reviving momentum for the renegotiated USMCA deal to be ratified.

Both Canada and Mexico argued for 14 months that their metals industries posed no security threat as their economies are integrated with the United States, and challenged the tariffs before the World Trade Organization.

"I'm pleased to announce we've just reached agreement with Canada and Mexico", Donald Trump said.

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How major U.S. stock indexes fared Monday
China industrial production and retail sales are slated for Wednesday, the same day as USA retail sales and industrial production. In Europe, London's FTSE 100 , Germany's DAX and the Paris CAC 40 were up by between 0.5 and 1.1 per cent by about 6:15 a.m.

A revised USA trade deal with Mexico and Canada signed in November effectively shields existing imports from the two nations to the United States from national security tariffs.

The White House has not yet issued a statement on the matter.

The decision signals the president's support for a system of managed trade, with the federal government setting limits on the amount of foreign products that American businesses and consumers may buy rather than allowing market forces to operate unfettered.

Tariffs on Japan and the European Union will remain in place.

"I don't think there is any more doubt about it, the president is far more attracted to managing imports than expanding exports", said Rufus Yerxa, president of the National Foreign Trade Council.

As talks proceed, the USA appears poised to add pressure on Japan.

Unlike his confrontation with China, Trump is virtually alone in favoring tariffs on all imported cars.

Spokespeople for U.S. Trade Representative Robert Lighthizer and Commerce Secretary Wilbur Ross did not immediately respond to a request for comment.

John Bozzella, president of Global Automakers, representing foreign carmakers operating in the USA, added: "No automaker or auto parts supplier asked for this 'protection.' We are headed down a risky and destructive course".

Trump had faced a Saturday deadline to decide what to do about the auto tariffs.

Trump reportedly chose to delay his decision to avoid overlap between the automotive import issue, ongoing NAFTA negotiations, and a separate trade spat with China, according to The New York Times.

When a renegotiated deal was signed after almost 14 months of negotiations, the tariffs remained in place.

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