The Trump administration on Tuesday announced that it was renouncing tariffs on aluminum from Canada, as Ottawa prepared to retaliate.
Read also: Donald Trump announces reimposing tariffs on Canadian aluminum
"
After consulting with the Canadian government, the United States notes that trade in unalloyed crude aluminum is expected to normalize in the last four months of 2020, with imports declining sharply from the leaps recorded earlier in the year,
”said a statement from the US Trade Representative.
Based on these expectations, Washington decided to re-apply the principle of free trade, that is to say without customs duties, retroactively to September 1.
Canada announced on August 7 its intention to impose "
countermeasures
" of 3.6 billion Canadian dollars (2.3 billion euros), in reaction to Donald Trump's decision to reimpose tariffs 10% on Canadian aluminum.
The trade retaliation was due to go into effect this week.
Deputy Prime Minister Chrystia Freeland, who had negotiated the new free trade agreement between the United States, Canada and Mexico, deemed
the American decision
"
absurd
", denouncing "
unjustified tariffs
".
"
For every dollar imposed by the United States on Canadian imports, we will impose in return an equivalent tax
", then indicated the number 2 of the Canadian government.
Average monthly imports are expected to fall by 50% from the January through July monthly average, the USTR said on Tuesday.
The Trump administration has not completely lifted the threat of potential tariffs on aluminum, however.
Read also: Entry into force of the North American trade agreement under high voltage
If Canadian exports were to exceed 105% of the expected volume for any month during the four-month period, then Washington would retroactively impose tariffs of 10% on all exports made during that month, explains t -he.
And if they exceed the expected volume, they must decrease by as much the following month.