Washington, March 6 (TNS): US President Donald Trump appeared to suggest that Canada and Mexico could win exemptions to his planned sweeping tariffs on steel and aluminium if the two countries sign a new NAFTA trade deal and take other steps.
He made the comments as the United States, Canada and Mexico were wrapping up their latest round of talks on revamping the 1994 NAFTA deal, and as world shares dipped again, partly on concerns that Trump’s tariff plan could spark a global trade war.
We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for USA. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed,” Trump tweeted.
A representative for the White House did not immediately respond to a request for comment on the president’s statement.
Trump has touted the planned tariffs, which he announced last Thursday, as a way to revive the U.S. steel and aluminium industries. This point was repeated on Monday by White House Director of Trade and Industrial Policy Peter Navarro. The president said, we can’t have a country without an aluminium and steel industry. However, Navarro indicated he had not seen Trump’s tweets on Canada and Mexico being exempted if a NAFTA deal was achieved. That would be a great thing for the American people, but at this point in time 25 percent on steel, 10 percent on aluminium, no country exclusions – firm line in the sand,” Navarro said. Trump, a Republican, has long bucked his party’s broad support for free trade, promising both on the campaign trail and in the White House that he will seek deals that better favour American workers. That has included the threat that Washington will withdraw from the North American Free Trade Agreement if it is not satisfactorily renegotiated, and his unexpected, market-rattling announcement of plans for hefty tariffs on steel and aluminium imports…..Reuters
