The sudden about-face comes just hours before the federal Liberal government was expected to announce a suite of countermeasures in retaliation of the US tariffs on Canadian Aluminum.
Aluminum Tariffs Lifted
A few hours before Canada was to announce retaliatory tariffs on US aluminum products, the U.S. abruptly reversed its decision and lifted tariffs on Canadian aluminum
The United States is standing down in its tariff dispute with Canada and lifting a 10 per cent levy on aluminum imported from north of the border.
The office of the U.S. Trade Representative said in a statement it will lift the tariffs retroactive to Sept. 1 because it expects Canadian exports to "normalize" over the remainder of the year. Accordingly, the United States will modify the terms of the 10 per cent tariff imposed in August on imports of Canadian non-alloyed unwrought aluminum.
In the statement, the US Trade Representative says it will continue to monitor trade in aluminum and reimpose the tariff if levels spike unexpectedly. The tariffs could be re-imposed if shipment volumes exceed 105 per cent of the stated volumes.
The sudden about-face comes just hours before the federal Liberal government was expected to announce a suite of countermeasures in retaliation for the tariffs.
The government had already issued a list of possible products on the target list, including beverage cans, washing machines and golf clubs.
The U.S. imposed the tariffs last month at the request of two American manufacturers, prompting an outcry from Canadian producers.
The government had said during the summer that unless the U.S. dropped its latest round of aluminum tariffs, Canada would impose $3.6 billion in counter-measures.