Trump rolls back steep tariffs on metal from Canada and Mexico

Reuters

FILE PHOTO: FILE PHOTO: G20 leaders summit in Buenos Aires

• President Donald Trump said he would roll back metal tariffs on Canada and Mexico.
• The move marks a major step toward ratifying the new NAFTA agreement reached last year.
• The metal tariffs were levied in a bid to keep cheap material from flooding the US market, but the sweeping policy has drawn criticism from lawmakers who said it alienated allies.
• Visit Markets Insider's homepage for more stories.

President Donald Trump lifted metal tariffs on Canada and Mexico on Friday, clearing a major hurdle for a new North American trade agreement.

The announcement that Mexico and Canada would no longer face US tariffs of 25% on steel and 10% on aluminum, which had been levied last March, came after Trump spoke with Canadian Prime Minister Justin Trudeau.

Mexico and Canada agreed to remove all retaliatory tariffs following adjustment, according to the Associated Press, which is set to take effect in 48 hours.

The metal tariffs were levied in a bid to keep cheap material from flooding the US market, but the sweeping policy has drawn criticism from lawmakers who said it alienated allies.

Trade officials from Canada and Mexico have signaled that unless the tariffs were lifted, they would be reluctant to ratify an overhaul of the decades-old North American Free Trade Agreement reached last year.

Members of Congress have been trying to persuade the administration to shift focus to China, with some refusing to debate the United States-Mexico-Canada Agreement until duties on North American steel and aluminum had been removed.

"I've met with congressional colleagues, as well as U.S., Canadian and Mexican trade officials, to discuss how our nations will secure legislative approval of USMCA," Sen. Chuck Grassley told the Wall Street Journal last month. "A significant roadblock is the administration's tariffs on steel and aluminum and retaliatory Canadian and Mexican tariffs on U.S. products."

This story is developing. Check back for updates.