Trump sends mixed signals on steel tariffs, Canada, Mexico and NAFTA

WASHINGTON — President Trump suggested Monday he may end steel tariffs on Mexico and Canada if they give him better trade terms while re-negotiating the North American Free Trade Agreement.

Trump did not provide many details in a pair of tweets, except to say that Canada “must treat our farmers much better,” while Mexico “must do much more on stopping drugs from pouring into” the United States.

“NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A.,”  Trump tweeted. “Massive relocation of companies jobs. Tariffs on Steel and Aluminum will only come off if new fair NAFTA agreement is signed.”

We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies jobs. Tariffs on Steel and Aluminum will only come off if new fair NAFTA agreement is signed. Also, Canada must..

— Donald J. Trump (@realDonaldTrump) March 5, 2018

…treat our farmers much better. Highly restrictive. Mexico must do much more on stopping drugs from pouring into the U.S. They have not done what needs to be done. Millions of people addicted and dying.

— Donald J. Trump (@realDonaldTrump) March 5, 2018

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Contrary to Trump’s claims, the United States has a trade surplus with Canada.

Canada is also the top exporter of steel and aluminum to the United States, and the biggest importer of American steel and aluminum.

Trump’s tweets kicked off a week in which he plans to sign new tariffs of 25% on steel imports and 10% on aluminum imports, a move that has drawn criticism from economists who say it will spark a trade war and higher prices for consumers worldwide.

While the tariffs are targeted more at China, other countries may be affected. Officials in Canada, Mexico, and other nations have attacked Trump’s plan, and some say they may authorize counter-tariffs targeting American products from bourbon to blue jeans.

Aides said there are no plans for exemptions, but that Trump could always decide otherwise.

“He has made a decision at this point, 25 and 10,” said Commerce Secretary Wilbur Ross, speaking Sunday on NBC’s Meet The Press. “If he for some reason should change his mind, then it’ll change.”

The president also left his plans unclear, tweeting later in the day: “To protect our Country we must protect American Steel! #AMERICA FIRST.”

Trump made trade a major focus of his 2016 presidential campaign, claiming other countries were taking advantage of the United States.

He pledged to place tariffs on foreign products and threatened to end the North American Free Trade Agreement with Canada and Mexico unless they signed off on changes to NAFTA, the subjects of ongoing negotiations.

 

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