Trade News: U.S., Japan Working On Metals Tariffs While Canada Gets Tough With U.S

What happens abroad impacts MSCI members in North America. Here is the latest economic, trade, and other policy news of note for the last week:

• The United States and Japan are working toward a deal to alleviate the impact of the United States’ Section 232 tariffs on steel and aluminum exports. According to the Taipei Times, the U.S. Department of Commerce and Office of the U.S. Trade Representative have submitted a proposal to officials in the new government of Japanese Prime Minister Fumio Kishida, but the contents of that proposal have not yet been made public. An unnamed official told the newspaper the Japanese government is holding out for a better deal. (Japan would like the tariffs to be completely eliminated.) Read more here.
• According to the American Journal of Transportation, in mandate letters sent to his top economic ministers, Prime Minister Justin Trudeau has made it clear he wants “to take tough positions on trade issues amid growing disputes with the U.S., potentially signaling a more protectionist approach from Canada.” Prime Minister Trudeau sent the letters to his finance, trade, and procurement ministers. Finance Minister Chrystia Freeland’s mandate letter sets out a reciprocal procurement policy that “will ensure goods and services are procured from countries that grant Canadian businesses a similar level of market access.” Trade Minister Mary Ng was asked to “engage the United States to address bilateral trade issues and protectionist measures” while Procurement Minister Filomena Tassi was instructed to “continue the modernization of procurement practices so they support Canada’s economic policy goals, including balanced procurement opportunities with Canada’s trading partners.”