Mexico, Canada Don't Want Tariff Exemptions Tied to NAFTA

Canada will not bend to US steel tariff pressure in NAFTA talks, says Freeland

Canada will not bend to US steel tariff pressure in NAFTA talks, says Freeland

However Mr Trump appears to be using the tariffs to leverage concessions from other countries, pressuring for example Canada and Mexico to rewrite the North America Free Trade Agreement. As with many of Trump's economic ideas, the tariffs were driven by the misguided notion that all worldwide trade is a zero-sum game, wherein any benefit derived by a foreign partner must by its very nature have come at America's expense.

Trump said in a tweet on Saturday the United States was ready to drop its tariffs if the European Union lowered its "horrific" rates on USA products. "Big Deficit. If not, we Tax Cars etc. FAIR!" House Speaker Paul Ryan, R-Wis., said he disagrees with the move, and other congressional Republicans are hoping to block the duties with legislative action.

"We are entering an era where trade war is starting to show its teeth", French Trade Secretary Jean-Baptiste Lemoyne told POLITICO in Brussels.

However, Trump more directly tied Canada and Mexico's exclusion from the tariffs to a successful NAFTA outcome.

Fox criticised the unilateral imposition of U.S. tariffs, which will impose a 25 per cent duty on steel imports and a 10 per cent tax on aluminium imports, and said that they "have weak foundations in worldwide law".

Trump has singled out Europe in the billowing trade row, threatening to tax German cars if the European Union doesn't lower barriers to United States products. It is said that putting up tariffs is like putting rocks in your own harbour and, ultimately, will hurt your own country's consumers, producers and workers.

Shortly after Trump's tweet, Turnbull said on Twitter that the relationship between the two allies was fair and reciprocal. The U.S., Canada, and Mexico wrapped up their seventh round of negotiations early this month.

In a phone call from the smelter town, Trudeau thanked Trump for the "special consideration" extended to Canada on the tariffs, and emphasized the importance of preserving "mutually beneficial" supply chains to support jobs and businesses on both sides of the border, his office said.

The EU has been talking with partners about a legal challenge at the World Trade Organization to Trump's plan and is considering safeguards to prevent steel and aluminium, diverted from the United States, flooding into Europe. "If you're thinking about trying to get your key partners to actually cooperate with you on the underlying issue ... it's going to be much more hard to get them to do so if at the same time you're hitting them with tariffs".

Turnbull also said Australia would not join an worldwide protest against the US tariffs.

According to an European Union statement, the average European Union tariff is 3 percent, not much more than the United States' average 2.4 percent. The outbreak of trade wars will act like a tax on US consumers and negatively impact millions of U.S.jobs.

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