Trade Cases
U.S. Suggests Steel Quotas Replace Tariffs for Mexico
Written by Sandy Williams
August 26, 2018
Mexican steel association Canacero said it has been called to Washington to discuss replacing the 25 percent tariff on steel imports to the U.S. with quotas.
A spokesperson for Canacero President Maximo Vedoya verified the request by Washington in a statement to Reuters.
“Talks are taking place now and the most important thing for the steel sector is to move forward under the principle of complete reciprocity,” he added.
According to Reuters, the talks are separate from the ongoing NAFTA negotiations. President Trump has indicated that a successful renegotiation of the NAFTA agreement would end the tariffs imposed on steel and aluminum imports from Canada and Mexico.
Bilateral discussions between the U.S. and Mexico are drawing to a close with Canada expected to re-enter negotiations to finalize a new agreement. The suggestion of quotas, and Mexico’s consideration of them, seems to be at odds with the potential of total steel tariff relief from a renegotiated NAFTA agreement.
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Leibowitz: The UK trade agreement, a template for future trade deals?
The UK deal may signal relaxation of the heaviest tariffs. The suspension of the reciprocal tariffs greater than 10% - remember, 57 countries were hit with that - ends on July 9. But it could be extended. If more deals like the one with the UK are struck, the suspensions may continue to permit more agreements - relieving global markets of considerable worry.
US, UK reach trade deal that includes Section 232 ‘alternative’
The US and UK governments have announced a trade deal in which an “alternative” to the Section 232 steel and aluminum tariffs will be provided.
US pols urge ‘domestically owned’ steel industry
US Sen. Jim Banks (R-Ohio) and Rep. Frank Mrvan (D-Ind.) have written a letter in support of a “domestically owned and operated American steel industry” being vital to national security.
Leibowitz: Trump takes aim at trade with a tariff ‘punt gun’
The tariffs are intended to produce more investment and jobs in US manufacturing. But first, there will be a cosmic change, potentially wiping out millions of jobs in the short run. While administration officials will no doubt cringe at the comparison, it reminds me of the effort to undercut fossil fuels production to address climate change. Led by Democrats, the effort was to destroy fossil fuels so that renewable energy sources would have more space to grow. The result: inflation and electoral defeat in 2024.
Price: Expect new trade shocks as Trump’s ‘reciprocal’ tariff negotiations continue
President Trump cast a wide net with the proposed, reciprocal tariffs. The negotiating stage will be critical to determining the success of his strategy. And for those suffering tariff whiplash, don’t expect the pace of change to slow down just because the reciprocal tariffs are entering a negotiating phase.