US Lifts Aluminium Tariffs on Canadian Imports as Senator Collins Cites White House Talks

Washington has reversed its 10% tariff on specific aluminium imports from Canada, a decision communicated as US Senator Susan Collins, a Republican facing a challenging re-election contest, stated her involvement in discussions with the White House. The tariffs, which were reapplied in August, had provoked a strong negative reaction from Canadian authorities, who had pledged to implement retaliatory tariffs on US goods.

Canadian Deputy Prime Minister Chrystia Freeland previously described the US levies as 'unacceptable' and 'unjustified', particularly given the context of the Canada-United States-Mexico Agreement (CUSMA) trade deal. The initial imposition of tariffs in 2018, also targeting steel imports, had led to a protracted trade dispute that saw Canada introduce its own tariffs on American products, including bourbon, before a resolution was reached.

The US Department of Commerce clarified that it anticipates Canadian aluminium exports for the remainder of 2020 will return to 'historic levels', citing this expectation as the basis for the tariff removal. Should export volumes surpass these anticipated levels, the department indicated that tariffs could be reimposed retroactively. This conditional lifting underscores the transactional nature of US trade policy, often prioritising immediate domestic political and economic concerns over stable international trade relations.