Canada drops plans to retaliate after US removes aluminium tariff

Canada has dropped its threat to impose retaliatory sanctions against U.S. aluminium products after Washington announced its decision to remove a 10% levy on Canadian aluminium imports.

Canadian Deputy Prime Minister and Finance Minister Chrystia Freeland welcomed the decision at a press conference in Ottawa on Tuesday.

Canadian Trade Minister Mary Ng welcomed the US decision to drop its tariffs. Mary Ng said, "Canada will not be imposing reciprocal counter-measures on the United States."

The US 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.

The Office of the US Trade Representative (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."

In August, US President Donald Trump 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.