U.S. drops tax on Canada’s aluminum, heading off retaliation

The Trump administration said Tuesday that it is dropping taxes on Canadian aluminum, easing tensions with a close ally just hours before Canada was prepared to impose retaliatory sanctions.

The Office of the U.S. Trade Representative said the U.S. is ending the 10% tariffs a month after imposing them. The U.S. had charged last month that an influx of Canadian aluminum justified the levy.

But the office said Tuesday that shipments of Canadian aluminum are returning to normal levels. It said it could re-impose the tariffs if the imports surged again.

Canada was preparing to impose retaliatory tariffs on U.S. products Tuesday.

Gov. Janet Mills had joined New Hampshire Gov. Chris Sununu and Vermont Gov. Phil Scott to ask Trump to eliminate the tariff, citing the negative impact on manufacturers and supply chain businesses in northern New England.

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