The Trump administration has apparently reversed course on a tariff on Canadian aluminum, which will avoid exacerbating an already tense situation over supply of aluminum cans.

President Trump, in remarks at a campaign event in Ohio last month, said he was imposing a 10% tariff on Canadian aluminum imports, calling it "absolutely necessary to defend our aluminum industry.” But the Office of the U.S. Trade Representative announced Sept. 15 that it was dropping the tariff retroactive to Sept. 1.

The U.S. imposed tariffs on foreign aluminum and steel in 2018, but agreed later to exempt Canada and other countries. In announcing its reversal of the latest tariff, the U.S. called it unnecessary because it expects aluminum imports to decline.

The Canadian government was cautiously optimistic about the new development. Finance Minister Chrystia Freeeland told BBC News that “After four years of working with this American administration, we have understood that we have to be ready for anything.”

The news will no doubt be welcome to makers and buyers of aluminum packaging, which is already experiencing a surge in demand due to the pandemic. metal imports are facing a further barrier: a scarcity of trade-credit insurance, which protects importers and purchasers of imported goods like metals in case of default.