President Trump announced that the US has lifted steel and aluminum tariffs on Canada and Mexico, Bloomberg first reported. The move will make it easier for NAFTA’s replacement trade deal, the USMCA, to be approved by the three nations.
Be Smart: Sustained tariffs would have continued to adversely affect the real estate industry. Case in point: steel material comprises around 16% of the total building cost for a typical commercial project.
Dig Deeper: The move will remove the 25% steel and 10% aluminum tariffs the US placed on the two trading neighbors almost a year ago in the name of national security. The decision sparked tit-for-tat duties from Canada and Mexico on farming goods and other products. As part of this agreement, the nations will ramp up efforts to trace the origin of metal imports (i.e. China) to stop the diversion of shipments from other nations to dodge tariffs.