The US and Mexico are nearing an agreement to eliminate President Donald Trump’s 50% tariffs on a pre-determined volume of steel imports, according to sources familiar with the discussions cited by Bloomberg. The deal would update a similar arrangement made during Trump’s first term.
I think Canada and the US are set for a similar type of deal in the near future as signs point to them also negotiating in secret. I thought Mexico might be left out of the deal because it’s been a big source of trans-shipments but that hasn’t been the case.
In the prior deal under Trump I, the US did not impose a hard quota so we will see what the details and tariffs are. The report notes that it would be a 0% tariff and that Trump will need to sign off on any deal.
“Under its current terms, it would allow US buyers to import Mexican steel duty-free as long as they kept total shipments below a level based on historical trade volumes, according to the people.”
This article was written by Adam Button at www.forexlive.com.
