Business Groups Welcome Lifting of Steel, Aluminum Tariffs on Canada and Mexico

May 20, 2019
Don't stop there, they urge Trump administration.

The decision by the United States Friday to remove steel and aluminum tariffs on Canada and Mexico drew quick praise from several industry associations and business groups.

The U.S. Chamber of Commerce applauded the announcement by the Trump administration, saying it would "bring immediate relief to American farmers and manufacturers." The statement from President and CEO Thomas Donohue continued: "Critically, this action delivers a welcome burst of momentum for the USMCA in Congress, and we urge the administration and Congress to continue their efforts to chart a path toward its approval as soon as possible."

The U.S. administration's actions remove a 25% tariff on steel and 10% tariff on aluminum that had been placed on Mexico and Canada about a year ago under Section 232. Canada announced it would eliminate retaliatory duties.

The Coalition of American Metal Manufacturers and Users also welcomed the agreement and urged further action. "We urge the Trump Administration to terminate the remaining Section 232 steel and aluminum tariffs on our other trading partners as quickly as possible," said spokesperson Paul Nathanson in a statement.

The Alliance for American Manufacturing outlined the current state of the U.S. steel industry and urged vigilance moving forward.

"The administration's steel trade enforcement action has stabilized the domestic industry to a point where it believes alternative arrangements can be made with Canada and Mexico. Domestic output and capacity utilization are up, more than 12,000 new jobs have been announced, and import penetration is down. Steelmakers are investing billions of dollars in their American facilities," noted AAM President Scott Paul in a statement.

"However, the work is not done. Global overcapacity is still a significant challenge. Congress and the administration must remain vigilant against dumping, circumvention and transshipment, subsidies, overcapacity, and other challenges facing our steelmakers," he added.

About the Author

Jill Jusko

Bio: Jill Jusko is executive editor for IndustryWeek. She has been writing about manufacturing operations leadership for more than 20 years. Her coverage spotlights companies that are in pursuit of world-class results in quality, productivity, cost and other benchmarks by implementing the latest continuous improvement and lean/Six-Sigma strategies. Jill also coordinates IndustryWeek’s Best Plants Awards Program, which annually salutes the leading manufacturing facilities in North America.

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