This morning in metals news, U.S. Trade Representative Robert Lighthizer on Tuesday said the U.S. is working on a “practical solution” to lift the steel and aluminum tariffs on Canada and Mexico, China is expected to have a 2.65-million-ton copper deficit this year, and a preliminary report on iron ore miner BHP’s train derailment in November said operators mistakenly applied brakes on the wrong train.
USTR: U.S. Aims to Remove Steel, Aluminum Tariffs on Canada, Mexico While Preserving Gains for U.S. Industry
The United States-Mexico-Canada Agreement (USMCA), the successor to NAFTA, still must be ratified by the legislatures of the three countries.
A hangup toward that end is the fact that the U.S.’s Section 232 tariffs on steel and aluminum remain in effect for Canada and Mexico. The two countries have indicated they would not approve the deal without removal of the tariffs. Likewise, some U.S. politicians have argued for the removal of the tariffs for the U.S.’s northern and southern neighbors.
On Tuesday before the Senate Finance Committee, U.S. Trade Representative Robert Lighthizer said the U.S. is working on a “practical solution” to remove the tariffs while preserving gains the U.S. steel and aluminum industries have made in the last year.
“What I’m trying to do is a have a practical solution to a real problem … get rid of tariffs on these two, let them maintain their historic access to the U.S. market which I think will allow us to still maintain the benefit of the steel and aluminum program,” he was quoted by Reuters as saying.
China’s Copper Deficit
China is expected to post a copper deficit of 2.65 million metric tons this year, S&P Global Platts reported.
The report, citing data from a Beijing Antaike Information forecast, said copper demand is expected to rise 3% to 11.5 million metric tons, with production at 8.85 million metric tons.
Preliminary Report: Brakes Applied on Wrong Train in BHP Train Derailment
According to a preliminary report investigating the derailment of a BHP iron ore train in November, operators applied the brakes to the wrong train, Reuters reported.
Per the report, the Australian Transport Safety Bureau will release a final report on the incident later this year.