Canada will immediately remove its 10% duty on prepared beef products, and Mexico will rescind its 20% tariff on American pork. Both measures were retaliation for America’s imposition in March 2018 of 10% duties on imported aluminum and 25% on steel. In addition, Mexico is lifting a duty on American cheese. The mutual dropping of tariffs is seen as an important step toward ratification of the U.S.-Mexico-Canada Agreement, the Trump administration’s replacement for the North American Free Trade Agreement (NAFTA).
Meat and dairy industry representatives hailed the trade-war truce. “Dairy farmers have much to celebrate, with the resumption of normal business with our largest export partner,” said Jim Mulhern, president of the National Milk Producers Federation.