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Trump's metal tariff deal: Invest in the US or pay the price

29 Apr 2026 13:21 reported by Lily Nguyen

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The Trump administration has announced a tariff relief program for Canadian and Mexican steel and aluminum producers, offering reductions on the steep 50% tariffs currently in place, provided these companies commit to expanding production capacity within the United States. 

Formalized through a US Department of Commerce notice published Thursday, the program allows qualifying producers to apply for reduced duties, potentially cutting tariffs in half, by submitting detailed US production expansion plans. 

Relief under the program is limited strictly to imports linked to new American capacity, with companies required to meet rigorous milestones covering construction schedules, hiring targets, and capital investment commitments. 

The initiative follows the US imposition of tariffs as high as 50% on Canadian and Mexican metal imports, measures both countries contend are in violation of the United States-Mexico-Canada Agreement (USMCA). 

The program is already drawing significant backlash across North America and is beginning to reshape cross-border supply chains in the steel and aluminum sectors.

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