Steel Products
March 17, 2019
Leibowitz on Trade: The Latest on the USMCA, China Deals
Written by John Packard
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington:
Steel and aluminum tariffs are plainly on the table as part of the USMCA approval strategy. Canada and Mexico insist on the removal of the tariffs as part of ratification of the new “NAFTA 2.0.” U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin admitted as much in their congressional testimony last week. Ambassador Lighthizer said the administration was looking at quotas as a replacement, but hinted that Canada and Mexico were not happy with that alternative, desiring a complete exemption instead.Could quotas replace tariffs for Canada and Mexico? It’s possible—as Ambassador Lighthizer acknowledged, quotas can be constructive or destructive, depending on the amounts and the terms. I’ve been looking at several options for a possible quota regime that could become important in addressing the tariff issue:
