Sep 16 (LTIT) –On 15th September’20, the United States of America declared that it would no longer impose a 10% tariff on Canadian aluminium imports. It has been presumed that following the rise of retaliation from Ottawa, Donald Trump administration has changed its mind.

US withdraws 10% tariffs on Canadian Aluminium

The duty-free treatment will be retroactive to September 1.

The Office of the US Trade Representative (USTR), however, has published a list of expected maximum monthly shipments of aluminium and warned it will re-impose the tariff if imports exceed those amounts.

USTR said in a statement: "After consultations with the Canadian government, the United States has determined that trade in non-alloyed, unwrought aluminium is likely to normalise in the last four months of 2020, with imports declining sharply from the surges experienced earlier in the year."

"Accordingly, the United States will modify the terms of the 10% tariff imposed in August."

US withdraws 10% tariff on Canadian Aluminium

US President Donald Trump had exempted Canadian products from tariffs as part of the USMCA free trade deal between the two countries and Mexico.

In August’20, he issued an order for 10% tariff on aluminium starting on 16th August, citing a 27% rise in imports from Canada that posed a threat to domestic production.

The decision sparked with an enraged reaction from Ottawa, which said it would strike American aluminium products with C$3.6 billion in counter-tariffs.

More than 10,000 peoples are employed in the Canadian aluminium sector, and a few days back Prime Minister Justin Trudeau strongly called the new tariffs "unfair."

On 14th September’20, Canada had been expecting to kick-off its list of items subject to the retaliatory measures before the US made its declaration.

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An introductory list published by the Canadian government included soda and beer cans, bicycles, golf clubs and washing machines.

USTR said: “We would consult with the Canadian government at the end of the year to review activity over the last four months as well as its expectations for 2021.”