Skip to content

Tripar Blog

The United States-Mexico-Canada Agreement (USMCA) Impacts Canadian Metal Stamping and CNC Fabricators

United States-Mexico-Canada Agreement (USMCA) Impacts Canadian Metal Stamping And CNC Fabricators

The United States-Mexico-Canada Agreement (USMCA), which went into effect in 2020 replaced the North American Free Trade Agreement (NAFTA). NAFTA had largely eliminated tariffs on trade between the three North American countries, and the USMCA not only preserves free trade but also updates the rules to accommodate changes in the world since NAFTA went into effect in 1994. 

Canada exports $319.4 billion worth of goods to the US each year and imports $293 billion worth of goods. That’s more than the next 11 trade partners combined, so it was essential to allow the trifecta of countries, including metal stamping and CNC fabricators to compete in the North American market. In total, two million manufacturing jobs alone depend on North American trade.

The Impact US Tariffs Have On Steel And Aluminum Imports

It is important to note that the tariffs that the US imposed on steel and aluminum imports from sources outside the USMCA countries in 2018 (as part of Section 232 of the Trade Expansion Act) is evolving.

As of Jan. 2022, the EU is exempt from these tariffs and the US and Japan are in discussions about removing the tariffs. As such, it is important to monitor these tariffs and potential knock-on effects for USMCA manufacturers.

Metal components are required for a wide range of industries including Lighting, HVAC, Automotive, Consumer Electronics and Aerospace. Therefore, USMCA allows for Canadian sheet metal fabricators and metal stampers to source the raw materials in North America, manufacture a product and then ship the finished product to the U.S. or Mexico without tariffs.

Continue Reading

You also may be interested in the following articles

Ben’s 100th Birthday!

Ben’s 100th Birthday! May 23rd sets another milestone in Tripar’s history. Ben Sevack, founder of Tripar, is 100 years old! Ben, born in London in 1923, grew up assisting his
Read Article

New Capabilities, Stocked Items & Employees Testimonials

New Capabilities: 3 x Trumpf TruPunch 1000 We are pleased to announce our increased CNC capabilities thanks to the acquisition of two additional Trumpf TruPunch 1000 machines. These CNC Punch
Read Article

Voice of Customer

Some of you were recently contacted for an exercise we referred to as “Voice of Customer” (VOC). Several themes emerged, and we are pleased to report on three elements Tripar
Read Article

Looking for specific information or need a custom product built?

Contact us today and one of our representatives will get back to you with a free quote.