Steven Mnuchin—US Treasury Secretary—said that the U.S. administration is at the verge of finalizing a deal with Mexico and Canada to abolish the U.S. aluminum & steel tariffs. The countries have talked about the removal of tariff while signing a new trade agreement.
Chuck Grassley, senior United States Senator from Iowa, has said that he would block consent of Trump’s amendment of the US-Mexico-Canada Agreement until the metals tariffs are elevated on the neighbors of the nation. In retribution for the duties, both Mexico & Canada have imposed tariffs on the several US exported items including agricultural products.
U.S. representatives have asserted they will only increase the tariffs if Mexico & Canada help the nation in importing steel at relatively low prices from other regions including China. Both countries are not yet ready to accept such a plan.
Mnuchin is still expecting that the U.S. can formulate a fair trade deal with China. However, he is not confident about his statement.
On a similar note, Trump is looking to postpone his decision of smashing Japan & Europe by imposing auto tariffs as much as 25%, as he appears busy in managing his trade war with China, according to people familiar with this concern.
However, he has released a deadline to find out the way to proceed with the warning of tariff imposition on imported cars and auto parts on the authority of the U.S. national security. The news shook the entire share market, which has already been exhausted by the US-China trade agreement released last week.
Last year, Trump passed an order to the Commerce Department for investigating if imported vehicles and parts posed a risk to the U.S. national security. In the month of February, he was offered with a final report presenting a series of recommendations. However, the findings are not publicly released.