TORONTO (Pakistan Point News / Sputnik - 16th September, 2020) Canada will not impose retaliatory measures on US products following the Trump administration's decision to drop its 10 percent tariff on Canadian aluminum, International Trade Minister Mary Ng told reporters on Tuesday.
"Today, the United States announced their intention to drop these tariffs on imports of Canadian aluminum retroactive to September 1, 2020. Canada welcomes this decision... Canada will not be imposing reciprocal countermeasures on the United States," Ng said.
The Office of the US Trade Representative (USTR) decided that Canadian aluminum imports in the United States should be no more than 83,000 tons in September, 70,000 in October, 83,000 in November and 70,000 in December. The USTR noted that if Canadian imports exceed 105 percent of the expected volume for any month during the four-month period, then the 10 percent tariff may be re-imposed retroactively on all shipments made that month.
The Trump administration imposed the 10 per cent tariff on raw aluminum from Canada on Aug. 16 under Section 232 of the US Trade Expansion Act, which states the imports pose a threat to US national security, amid condemnation from aluminum organizations on both sides of the border.
Trump said that the tariff on aluminum imports was introduced after Canadian aluminum producers broke a commitment not to flood the United States with aluminum imports that was made by the Canadian government when the first round of tariffs were lifted.
Canada had threatened to impose retaliatory tariffs on nearly $2.7 billion on US aluminum products within 30 days of the introduction of the tariffs if the Trump administration did not reconsider its stance.