The Motor & Equipment Manufacturers Association (MEMA) recently urged the Trump Administration to issue tariffs exemption for Canada and Mexico on steel and aluminum before the United States-Mexico-Canada Agreement (USMCA) trade deal is signed.
USMCA will replace the North American Free Trade Agreement (NAFTA).
The Department of Commerce conducted Section 232 investigations earlier this year while the administration imposed steel and aluminum tariffs on Canada, Mexico, and other nations.
Section 232 gives the executive branch the ability to conduct investigations to determine the effects on the national security of imports.
“In order for the USMCA to achieve success, the U.S. must conclude negotiations with Mexico and Canada to exempt them from the Section 232 tariffs on steel and aluminum prior to signature by the parties,” Dan Sceli, MEMA board of directors chairman, said in a letter to U.S. Trade Representative Robert Lighthizer. “These tariffs are currently costing our industry hundreds of millions of dollars, negating any opportunity to invest in more U.S. manufacturing capacity or workforce development. USMCA will not create the desired opportunities for the United States without addressing steel and aluminum tariffs.”
In February, MEMA sent a letter to the White House including a list of products that should be exempt from tariffs.