The US has reached a deal with Canada to lift tariffs on steel and aluminium imports in a move that could lead to approval for a new North American trade deal.

In a joint statement, the US and Canada announced that a 25% tariff on steel imports, and of 10% on aluminium, will end in 48 hours.

It is widely expected the US and Mexico will make a similar announcement soon.

The US implemented the tariffs last year on grounds of “national security”.

Under the agreement, there will be no quotas on how much steel or aluminium the three countries buy from overseas.

However, the US and Canada will monitor imports and if a country is determined to be buying in too much, one of the other nations can request a consultation and potentially re-impose tariffs.