President Donald Trump on Friday announced a deal to lift US tariffs on steel and aluminum imports from Canada and Mexico that had created friction between the neighbors and blocked a new North American free trade agreement.

"I'm pleased to announce that we've just reached an agreement with Canada and Mexico and will be selling our product into those countries, without the imposition of tariffs," Trump said at an event in the US capital.

His statement came moments after Canada released the text of the agreement between Ottawa and Washington in which they agreed to eliminate US tariffs on steel and aluminum, and Canada's retaliatory measures, within no more than two days.

Mexico confirmed it had reached a similar agreement with the United States.

The steep US tariffs imposed last year -- 25 percent on steel and 10 percent on aluminum -- became a major stumbling block to ratifying a new North American trade pact negotiated last year by the three countries.

Canada and Mexico initially were exempted from the tariffs Trump enforced using a national security argument, as part of his hardline trade tactics.

Once America's neighbors were included, the levies drew retaliation with tariffs on a host of US products.

Even after the governments agreed to a revised free trade deal -- the US-Mexico-Canada Agreement, or USMCA -- the tariffs remained in place, but officials in Ottawa and Mexico City said they would not sign unless Washington removed the metals duties.

Speaking to reporters in Ottawa, Canada's Prime Minister Justin Trudeau said there was a shared recognition that "these tariffs were harming workers and consumers on both sides of the border" and "didn't make a lot of sense" in the context of a new free trade deal.

"Obviously these continued tariffs on steel and aluminum and our countermeasures represented significant barriers to moving forward with the new NAFTA agreement," he said, referring to the 24-year-old North American Free Trade Agreement.

"Now that we've had a full lift on these tariffs we are going to work with the United States on timing for ratification but we're very optimistic we are going to be able to move forward well in the coming weeks," Trudeau said.

Mexican chief trade negotiator Jesus Seade likewise tweeted that the lifting of tariffs "clears the way towards ratification of USMCA."

Some key members of the US Congress had said they would not agree to vote for the three-country free trade pact unless the Trump's metals tariffs ended.

"Hopefully Congress will approve it quickly," said Trump.

Democratic US Senator Chuck Schumer applauded the decision to remove the metals tariffs, but said there are other concerns about the USMCA.

"It is a good thing these tariffs will be lifted, and we should urge our allies to join us in preventing China's predatory practices," Schumer said in a statement.

However, "There are still many other issues that are outstanding before Democrats would support the USMCA."

According to the agreement, Canada and Mexico will withdraw all complaints lodged against the United States at the World Trade Organization.

The two countries also agreed to monitor imports of steel and aluminum to ensure metals that are sold at "dumped prices" -- below the cost of production -- are not purchased in or shipped through Canada and Mexico.

In addition, they agreed to a provision to reimpose steep duties if imports of the metals "surge meaningfully beyond historic volumes of trade over a period of time."

The US Trade Representative's office said the agreement "provides for aggressive monitoring and a mechanism to prevent surges in imports of steel and aluminum."

"This agreement is great news for American farmers that have been subject to retaliatory tariffs from Canada and Mexico," USTR said.

US tariffs on steel and aluminum from Europe remain in place, as does the EU retaliation. Some countries, including South Korea, accepted export quotas to avoid the tariffs. </s> U.S. Will Lift Tariffs On Steel And Aluminum From Canada And Mexico

Enlarge this image toggle caption Candace Elliott/Reuters Candace Elliott/Reuters

Updated at 3 p.m. ET

The Trump administration has reached a deal to lift tariffs on steel and aluminum imports from Canada and Mexico, in a move that could put the three nations a step closer to ratifying the USMCA trade deal that would replace NAFTA.

The tariffs will be lifted within two days, according to a joint U.S.-Canada statement posted by Canada's foreign ministry.

The U.S. tariffs on metals from Canada and Mexico have been in effect for nearly a year, with steel imports subject to a 25% tariff and aluminum to a 10% hike. Retaliatory tariffs from Canada and Mexico have been in place for nearly as long.

"I'm pleased to announce that we've just reached an agreement with Canada and Mexico" to end the recent tariffs, President Trump said during at a National Association of Realtors event Friday.

Trump then called on Congress to ratify the USMCA, to "make our economy even more successful than it already is — if that's possible. Which, it is possible."

Mexico's foreign affairs undersecretary for North America, Jesús Seade, also hailed the agreement, saying it was received with "great enthusiasm" in Mexico. He added, "This action opens the path to advance toward the ratification" of the replacement NAFTA deal.

Discussing the breakthrough Friday afternoon, Canadian Prime Minister Justin Trudeau said, "There was no one breakthrough moment" in negotiations.

At the Stelco steel plant in Hamilton, Ontario, Trudeau told reporters that he had "lots of conversations with the [U.S.] president over the past week, and an understanding as well that these tariffs were harming workers and consumers on both sides of the border."

And with both countries' leaders now hoping to get the USMCA ratified, Trudeau said, "it didn't make a lot of sense to continue to have tariffs on steel and aluminum between our countries."

Trudeau spoke to Trump about a deal to end the tariffs around midday, according to Cameron Ahmad, Trudeau's director of communications.

The joint U.S.-Canada statement says the two countries will establish a way to monitor aluminum and steel trade between them, with an eye to prevent the "transshipment" of aluminum and steel produced by a third country.

The deal also calls on both countries to prevent the importation of aluminum and steel that is "unfairly subsidized and/or sold at dumped prices."

The pact also leaves room for tariffs to be instated "imports of aluminum or steel products surge meaningfully beyond historic volumes of trade over a period of time, with consideration of market share."

"Canada buys more American steel than any other country in the world, accounting for some 50% of U.S. exports," the Canadian government says. It adds that nearly 84% of Canadian aluminum production is exported to the U.S.

In response to the tariff deal, the Coalition of American Metal Manufacturers and Users, or CAMMU, welcomed the news and called on the Trump administration to lift other steel and aluminum tariffs. The group of U.S. businesses and trade associations represents some 30,000 companies and was formed to advocate against Trump's tariffs on metals.

"These tariffs are damaging the U.S. manufacturing sector, and particularly downstream U.S. steel and aluminum consuming companies, by increasing prices and lead times for both domestic and imports of steel and aluminum and making the U.S. an island of high steel prices," the coalition said in a statement sent to NPR Friday.

CAMMU also praised the new agreement for not replacing the newly eliminated tariffs with quotas, which it described as "even worse for U.S. companies."

Trump imposed steel and aluminum tariffs on every country except Canada and Mexico about a month after receiving a letter from 25 U.S. steel and metal companies urging him to act "to prevent excess steel capacity and surging steel imports from undermining our national security and the viability of the U.S. steel industry."

Trump's original order included carve-outs for the closest U.S. neighbors. But after talks on a revised NAFTA deal took longer than the U.S. administration had hoped, Canada and Mexico were included in the tariffs. The leaders of the three countries signed the new U.S. Mexico Canada Agreement in late November. It won't take effect until all three countries' legislatures have voted to ratify the trade pact.

In late April, Senate Finance Committee Chairman Chuck Grassley, R-Iowa, warned Trump that the USMCA deal would be "dead" unless the steel and aluminum tariffs were lifted.

News of a deal to lift the tariffs comes two days after Treasury Secretary Steven Mnuchin said during testimony before a Senate Appropriations subcommittee that a deal was in the offing.

Earlier this week, Mexican Economy Secretary Graciela Márquez Colín said she believed a solution to the tariff standoff was imminent, as she held meetings in Toronto with Canadian Foreign Minister Chrystia Freeland. </s> WASHINGTON (AP) — The Latest on President Donald Trump and U.S. trade tariffs (all times local):

President Donald Trump has announced a deal with Canada and Mexico that would scrap "major tariffs," ending a simmering trade dispute that began when the president imposed tariffs on imported steel and aluminum in the name of national security.

Trump addressed the agreement while speaking before The National Association of Realtors. He urged Congress to approve a new trade pact between the three nations to replace the North American Free Trade Agreement.

Trump did not mention the tariffs he imposed last year on steel and aluminum imports. But he said "we'll be selling our product into those countries without the imposition of tariffs, or major tariffs."

While the tariffs helped many U.S. steel and aluminum makers, the retaliatory tariffs hurt other sectors of the U.S. economy, such as agriculture.

Canadian Prime Minister Justin Trudeau says Canada stayed strong in asking for a full lift of the Trump administration's tariffs on steel and aluminum.

Trudeau said at a steel facility in Hamilton, Ontario, that now that there is a full lift of those tariffs Canada is going to work with the United States on ratification of the new trade agreement between the U.S., Canada and Mexico.

President Donald Trump used a national security justification last year to impose tariffs on imported steel and aluminum. One of the motivations was to pressure Canada and Mexico into agreeing to a rewrite of the North American Free Trade Agreement.

The Canadians and Mexicans did go along with a revamped regional trade deal that was to Trump's liking. But the administration refused to lift the taxes on the metals imports anyway.

Trudeau says the Trump administration's national security justification didn't make sense and it was hurting workers and consumers in Canada and the United States.

The United States has agreed to remove steel and aluminum tariffs on Canada in what was a key roadblock to a new trade deal and a sore point in relations.

Canada, in turn, has agreed to scrap the tariffs it imposed in retaliation.

In a joint statement on Friday, the two countries said they have agreed to eliminate the tariffs within 48 hours.

Sources in the U.S. and Canada said the Trump administration also has reached a deal to remove steel and aluminum tariffs from Mexico.

President Donald Trump last year slapped tariffs on imported steel and aluminum from China and a number of other nations, including Canada, invoking a rarely used provision of a 1962 law to claim that the foreign metals posed a threat to U.S. national security.

The administration retained the tariffs on Canada and Mexico even after the two countries agreed to Trump's demands to overhaul the North American Free Trade Agreement, which went into effect in 1994. Removal of those tariffs on Canada has become a key demand for the administration to win support of the reworked trade agreement.

The United States has reached a deal to remove steel and aluminum tariffs on Canada and Mexico, while those nations would scrap retaliatory tariffs they imposed on U.S. products.

That's according to sources in the U.S. and Canada who spoke on condition of anonymity ahead of an announcement.

The deal removes a major hurdle to the passage of a new pact to replace the North American Free Trade Agreement.

President Donald Trump imposed tariffs last year of 25 percent on steel imports and 10 percent on imported aluminum. He employed a rarely used 1962 law that empowers him to put a levy on products that the Commerce Department determines threaten national security. Canadian Prime Minister Justin Trudeau planned a news conference this afternoon after earlier speaking with Trump.

President Donald Trump is delaying any decision to impose tariffs on car and auto part imports, deciding against ratcheting up trade disputes or impacting talks with European nations and Japan.

Trump announced his decision to delay for up to six months in a proclamation issued by the White House on Friday.

He was required to make a decision on Commerce Department recommendations aimed to protect the U.S. auto industry, based on national security concerns.

Trump directed his trade team to pursue negotiations and address the impact that imports are having on the U.S. auto industry and its ability to invest in new research and development that he says is critical to the nation's security.

Trump says he'll decide whether to take further action in 180 days. </s> US President Donald Trump on Friday announced a deal to lift US tariffs on steel and aluminum imports from Canada and Mexico that had created friction between the neighbors and blocked a new North American free trade agreement.

"I'm pleased to announce that we've just reached an agreement with Canada and Mexico and will be selling our product into those countries, without the imposition of tariffs," Trump said at an event in the US capital.

His statement came moments after Canada released the text of the agreement between Ottawa and Washington in which they agree to eliminate US tariffs on steel and aluminum, and Canada's retaliatory measures, within no more than two days.

Mexico subsequently confirmed it had reached a similar agreement with the United States.

The steep US tariffs imposed last year -- 25 percent on steel and 10 percent on aluminum -- became a major stumbling block to ratifying a new North American trade pact negotiated last year by the three countries.

Canada and Mexico initially were exempted from the tariffs Trump enforced using a national security argument, as part of his hardline trade tactics.

Once America's neighbors were included, the levies drew retaliation with tariffs on a host of US products.

Even after the governments agreed to a revised free trade deal -- the US-Mexico-Canada Agreement, or USMCA -- the tariffs remained in place, but officials in Ottawa and Mexico City said they would not sign unless Washington removed the metals duties.

Speaking to reporters in Ottawa, Canada's Prime Minister Justin Trudeau said there had was a shared recognition that "these tariffs were harming workers and consumers on both sides of the border" and "didn't make a lot of sense" in the context of a new free trade deal.

"Obviously these continued tariffs on steel and aluminum and our countermeasures represented significant barriers to moving forward with the new NAFTA agreement," he said, referring to the 24-year-old North American Free Trade Agreement.

"Now that we've had a full lift on these tariffs we are going to work with the United States on timing for ratification but we're very optimistic we are going to be able to move forward well in the coming weeks," Trudeau said.

Mexican chief trade negotiator Jesus Seade likewise tweeted that the lifting of tariffs "clears the way towards ratification of USMCA."

Some key members of the US Congress had said they would not agree to vote for the three-country free trade pact unless the Trump's metals tariffs ended.

"Hopefully Congress will approve it quickly," said Trump.

According to the agreement with Canada, the two governments will withdraw all complaints lodged in the World Trade Organization.

The two countries also agreed to monitor imports of steel and aluminum to ensure metals that are sold at "dumped prices" -- below the cost of production -- are not purchased in or shipped through Canada.

In addition, they agreed to a provision to reimpose steep duties if imports of the metals "surge meaningfully beyond historic volumes of trade over a period of time."

US tariffs on steel and aluminum from Europe remain in place, as does the EU retaliation. Some countries, including South Korea, accepted export quotas to avoid the tariffs.

Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on ndtv.com/elections. Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections. Election results will be out on May 23. </s> President Trump is imposing steep tariffs on steel and aluminum from three of America's biggest trading partners — Canada, Mexico and the European Union.

The trade penalties, 25% on imported steel and 10% on imported aluminum, take effect at midnight, Commerce Secretary Wilbur Ross told reporters Thursday.

The announcement immediately raised the risk of retaliatory tariffs against American products.

Trump announced worldwide steel and aluminum tariffs in March but granted exemptions to some major trading partners.

Canada, Mexico and the EU were among the countries granted relief while the United States pursued negotiations to address the administration's concerns about the state of domestic steel and aluminum production. Those negotiations had a Friday deadline.

Trump's decision could raise prices for Americans on a range of everyday products. It could also place the United States in a trade dispute on more than one front. The administration is separately moving ahead with tariffs on Chinese goods.

Trump imposed the steel and aluminum penalties under a 1962 law that gives the president broad power to increase or reduce tariffs on goods deemed critical to national security.

"We take the view that without a strong economy, you cannot have strong national security," Ross told reporters.

Trump's announcement lifted American steel and aluminum stocks because those companies stand to benefit from penalties against their foreign competitors. U.S. Steel climbed 3%. But the broader market sank because of trade war fears. The Dow fell about 200 points.

Europe had promised swift retaliation if it was hit with the trade penalties, and had warned it could quickly respond with 25% tariffs on US products such as motorcycles, denim, cigarettes, cranberry juice and peanut butter.

Getting rid of the exemptions for Canada and Mexico, meanwhile, could complicate ongoing negotiations on NAFTA. Canada had also pledged to retaliate.

"Should restrictions be imposed on Canadian steel and aluminum products, Canada will take responsive measures to defend its trade interests and workers," Canadian Foreign Minister Chrystia Freeland said in March.

The NAFTA talks were one factor in the administration's decision to grant exemptions to Canada and Mexico from the steel and aluminum tariffs. But Ross said Thursday that those talks "are taking longer than we hoped."

Related: The global steel industry by the numbers

Canada was the largest exporter of steel to the United States by value last year, according to data from Wood Mackenzie. Mexico was the third largest, behind South Korea.

The Trump administration said Tuesday that it is moving forward with tariffs on $50 billion worth of Chinese goods as punishment for intellectual property theft.

The Chinese government said the announcement was "obviously in violation of the consensus reached in Washington recently by both China and the United States." Both parties had previously said that tariffs would be put on hold as talks continued.

Ross is scheduled to go to China this weekend for a third round of negotiations.

The United States is also exploring the possibility of putting new tariffs on cars. Last week, The Trump administration announced an investigation into whether automobile imports are hurting US national security, laying the groundwork for another trade fight.

Such an action could hurt Mexico, Canada, Germany and Japan.

— CNNMoney's Alanna Petroff, Nathaniel Meyersohn and Matt Egan contributed to this report. </s> The United States has agreed to lift its tariffs on steel and aluminum imports from Canada and Mexico.

The move, which removes a major obstacle to renegotiating the North American Free Trade Agreement (NAFTA), will be implemented by Sunday afternoon, officials said.

President Donald Trump had imposed the tariffs — 25% on steel and 10% on aluminium imports — in March 2018 on national security grounds, saying the US market was being flooded with cheap imports from other countries, particularly China.

Under this weekend's agreement Canada and Mexico will also eliminate retaliatory tariffs on US products including cheese, milk and bourbon.

Canadian Prime Minister Justin Trudeau said it would open the way to further talks on a revised free trade deal.

"Obviously, these continued tariffs on steel and aluminum and our countermeasures, represented significant barriers to moving forward with the new NAFTA agreement," he said on Friday.

"Now that we've had a full lift on these tariffs, we are going to work with the United States on timing for ratification, but we're very optimistic we're going to be able to move forward move forward well in the coming weeks."

Speaking in Washington, Trump said he was now hopeful NAFTA could be replaced with the new U.S.-Mexico-Canada Agreement (USMCA).

"That deal is going to be a fantastic deal for our country and hopefully Congress will approve the USMCA quickly, and then the great farmers and manufacturers and steel plants will make our economy even more successful than it already is, if that's possible, which it is possible," he said. </s> The United States has agreed to remove punitive tariffs on Canadian steel and aluminum imports. This removes a major obstacle in efforts to ratify the new North American trade agreement between the two countries and Mexico.

The U.S. had imposed a levy of 25 per cent on steel and 10 per cent on aluminum and it took almost one year to have them lifted. “This is pure good news,” said Prime Minister Justin Trudeau at a stop at the Stelco plant in Hamilton, Ontario. He added that tariffs were hurting workers on both sides of the border.

In return, Canada has agreed to drop retaliatory action it has taken at the World Trade Organization. In addition, there will be a process created to monitor the trade, and if imports “surge meaningfully beyond historic volumes of trade” the importing country may reimpose duties of 25 per cent on steel and 10 per cent on aluminum.

In 2017, Canada was the world’s 19th largest exporter of steel. While Canada exports steel to over 140 countries and territories, the U.S. and Mexico represent the top markets for it. At the same time, Canada buys about half of the United States’ steel exports.

Canada is the world’s third-largest producer of aluminum. About 84 per cent of primary production is exported to the U.S.

The steel and aluminum industries are important to the Canadian economy. The government says that in 2017, the steel industry accounted for more than 23,000 jobs and contributed $4.2 billion to the GDP. The aluminum industry employed 10,500 people and contributed $4.7 billion to the GDP.

In 2017, Canada was the world’s 19th largest exporter of steel. While Canada exports steel to over 140 countries and territories, the U.S. and Mexico represent the top markets for it. At the same time, Canada buys about half of the United States’ steel exports.

Canada is the world’s third-largest producer of aluminum. About 84 per cent of primary production is exported to the U.S.

The steel and aluminum industries are important to the Canadian economy. The government says that in 2017, the steel industry accounted for more than 23,000 jobs and contributed $4.2 billion to the GDP. The aluminum industry employed 10,500 people and contributed $4.7 billion to the GDP. </s> Trump’s announcement that he will impose stiff tariffs on imported steel and aluminum has upended political alliances on Capitol Hill.

President Donald Trump listens during a meeting with steel and aluminum executives in the Cabinet Room of the White House, Thursday, March 1, 2018, in Washington. Trump’s announcement that he will impose stiff tariffs on imported steel and aluminum has upended political alliances on Capitol Hill. (AP Photo/Evan Vucci)

President Donald Trump issued a pair of early-morning tweets that say American tariffs on imported steel and aluminum will only come off if there’s a new NAFTA agreement that’s fair to the United States.

The president also wrote that Canada must treat U.S. farmers better and Mexico must do more to stop drugs from getting into the United States.

Related: Trump promises big tariffs on steel, aluminum; impact on Canada still unclear

The president has invoked national security as the reasons for imposing tariffs of 25 per cent and 10 per cent, respectively, on all imported steel and aluminum.

But the Trump administration is coming under political pressure at home to exclude Canada, which is the largest source of imported steel and aluminum to the United States.

His administration is in the midst of renegotiating the North American Free Trade Agreement, which covers trade between the United States, Canada and Mexico.

Related: Trudeau sounds alarm bell as U.S. inches toward tariff war

Like us on Facebook and follow us on Twitter. </s> They "also discussed relations with China, uranium, and the new NAFTA."

One year ago, Commerce Secretary Wilbur Ross said the tariffs on Canada, as well as Mexico, were necessary to prevent a flood of cheap Chinese steel into the U.S. through its NAFTA partner countries.

Ross also said the U.S. was imposing tariffs on Canada and Mexico because the trade talks were taking too long, even though they were ostensibly imposed under a section of American trade law that gives the president that authority to do that to protect national security.

The Trudeau government has branded the tariffs as illegal, absurd and insulting, while Canada and Mexico say that it will be tough to ratify the new continental free trade agreement — the United States-Mexico-Canada Agreement — if they remain in place.

Ottawa has also been working to demonstrate to Washington that it has taken steps to stem the flow of cheaper Chinese metals into the Canada.

But Canada has stood firm with the U.S. on one key, related point: it has steadfastly refused to agree to quotas or other limits on its exports in order to get the tariffs lifted.

Canadian sources have described the idea of a quota system as a non-starter and a concession that Canada was not prepared to make.

Now, it appears Canadian negotiators have persuaded their American counterparts to accept that position — paving the way for a compromise that could allow the Trump administration to holster one of its favourite new trade weapons, while claiming to have enlisted the help of an ally in its ongoing fight.

"We have always said we are not the problem and that USMCA wouldn't pass as long as the tariffs were in place. We would never accept a hard quota. I think they finally heard us," said one source, speaking on the condition of anonymity, citing the delicate new phase of the current negotiations.

"Now we can work together to deal with over production outside of North America and approve the improved free trade deal."

Dan Ujczo, a trade lawyer and Canada-U.S. specialist in Columbus, Ohio, said he believes the U.S. has "moved off of its demand for a hard quota which is a key factor in the new optimism."

The discussions between the three countries have now moved to creating "enhanced monitoring/anti-circumvention measures" relating to non-North American steel imports.

The three countries are also considering strict new rules of origin for steel and aluminum, said Ujczo.

"Companies that rely on non-North American steel and aluminum in their NAFTA/USMCA region supply chains are highly likely to be impacted by these discussions," he said.

"While companies may celebrate a top-line without a hard quota, the devilment will be in the details."

But Ujczo said caution is warranted before getting too excited: "Trump has not approved any of the proposals. As previously reported, the U.S. and Mexico were near resolution of the Section 232 tariffs in November 2018 only to have the president reject the deal."

Canadian officials are "encouraged" by a pair of conversations in the past week between Trump and Trudeau, as well as Wednesday's Washington meeting between Foreign Affairs Minister Chrystia Freeland and Trump trade czar Robert Lighthizer.

But sources say that after so many false starts about the possible lifting of tariffs, nothing is certain until it actually happens.

"There have been many false starts… we've been close before," said another source, speaking on the condition of anonymity. "We have ramped up efforts recently."

A U.S. Commerce Department review found that imports of automobiles and some parts could hurt U.S. national security, but Trump decided to wait 180 days before imposing tariffs and ordered new talks to deal with the issue.

The Commerce Department reached the same conclusion about Canadian and Mexican steel and aluminum imports almost one year ago.

Freeland to meet Lighthizer, Grassley in Washington to push for tariff removal

Opinion | Why Donald Trump's trade war did not lead to a recession

Steelmakers in Hamilton face flood of cheap imports with federal decision to lift safeguards
The United States lifts tariffs on steel and aluminum from Canada and Mexico.