Canada, Mexico to gain temporary exemption from U.S. tariffs on steel – by Adrian Morrow, Lawrence Martin and Rachelle Younglai (Globe and Mail – March 8, 2018)

https://www.theglobeandmail.com/

Canada and Mexico will be spared from President Donald Trump’s tariffs on steel and aluminum while the three countries renegotiate NAFTA, with a permanent exemption if they agree to a deal that satisfies the President, the White House said on Wednesday.

The move allows Mr. Trump to avoid slamming the heavily integrated continental steel and aluminum industries while still using the threat of tariffs to crank up the pressure on his negotiating partners to agree to his protectionist demands at the bargaining table.

The President took to Twitter on Thursday morning to say he would hold a meeting at 3:30 p.m. at the White House over the planned tariffs of 25 per cent on steel and 10 per cent on aluminum, and that the United States must show flexibility toward its allies.

“Looking forward to 3:30 P.M. meeting today at the White House. We have to protect & build our Steel and Aluminum Industries while at the same time showing great flexibility and cooperation toward those that are real friends and treat us fairly on both trade and the military,” he said in the Twitter post.

Peter Navarro, a trade adviser to Mr. Trump, told Fox Business Wednesday evening: “The proclamation will have a clause that does not impose these tariffs immediately on Canada and Mexico. It’s going to give us an opportunity…to negotiate a great deal for this country.”

For the rest of this article: https://www.theglobeandmail.com/report-on-business/canada-mexico-to-gain-temporary-exemption-from-us-tariffs-on-steel/article38246719/

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