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The United States recently quietly launched a policy that opens the possibility of lower tariffs on some Canadian steel and aluminum exports to the U.S. While this move falls short of the complete exemption that Canada had hoped for, B27G120 oriented electrical steel, it still indicates a strategic shift in the Trump administration's trade policy.
According to an executive order issued in October, President Trump authorized the U.S. Department of Commerce to reduce tariffs on steel and aluminum imports from Canada and Mexico by up to half under certain conditions.
If certain conditions are met, tariffs can be reduced from 50% to a minimum of 25%. B27G120 oriented electrical steel, These conditions require the relevant companies to expand production capacity within the United States, and the steel and aluminum products must be used in the American automotive industry.
However, no company has yet received this exemption. Canada has also stated that this measure falls far short of its negotiating demands.
This policy reveals two major new trends in U.S. trade policy: first, the White House is willing to lower some tariffs to alleviate cost pressures on American consumers and manufacturers; and second, the Trump administration is willing to strike "investment-for-tariff" deals with individual companies.
White House Deputy Press Secretary Kush Desai stated: "We are willing to consider customized tariffs, but only if the companies involved commit to relocating their production facilities to the United States."
This executive order was included in the document raising tariffs on heavy trucks on October 17th, and therefore has not received much attention recently.
The scope of this exemption is very limited. Relevant foreign companies must proactively apply to the Department of Commerce and demonstrate that they are expanding their production capacity in the United States. B27G120 oriented electrical steel, The exempted quantity will be equal to the newly added production volume within the U.S. The minimum tariff reduction is 25%. If a steel company adds 100,000 tons of production capacity in the United States, it can import an equivalent amount of steel from Canada or Mexico at a tariff rate of 25% to 50% to meet the needs of U.S. automakers.