Trump unwilling to exempt Canada and Mexico from tariffs unless they concede to NAFTA demands

Monday, 05 March 2018 21:16:51 (GMT+3)   |   San Diego
       

After a weekend spent vigorously defending his decision to impose sweeping tariffs on imported steel and aluminum, Donald Trump said Monday that he would only consider exempting close trade allies Canada and Mexico from the Section 232 decision if the countries concede to US demands in the ongoing NAFTA renegotiations. The last round of negotiations is expected to wrap up today in Mexico City.

Canada, Mexico, the European Union and other trading allies have indicated they would likely retaliate with tariffs on US products if the steel and aluminum tariffs are implemented. In response, Trump singled out the EU on Saturday, tweeting a threat to impose an additional tax on all European auto imports into the US.

Media reports about Trump’s various trade threats have noted that what he says is less important than what he actually signs into law, and in light of reports that he only announced the tariffs last week in a “fit of rage” over unrelated White House scandals because he wanted a “win,” there is still a chance that Trump could alter the eventual policy toward a more targeted approach.

US Department of Commerce Secretary Wilbur Ross said as much during an appearance on “Meet the Press” on Sunday. “Whatever his final decision is, is what will happen,” Ross said, adding that “If he says something different, it’ll be something different. I have no reason to think he’s going to change. … He has made a decision at this point…If he for some reason should change his mind, then it’ll change.”

Ross and senior trade advisor Peter Navarro are reportedly among the few presidential advisors who support the tariffs, while many other cabinet members and Republican lawmakers oppose them. Gary Cohn, the Director of the National Economic Council and Trump’s chief economic advisor, has reportedly threatened to resign if the tariffs are signed into law.

Ross could have an alternative interest in supporting the tariffs. In 2002, the same year President George W. Bush implemented the disastrous Section 201 steel tariffs, Ross founded the International Steel Group, which purchased the assets of several bankrupt steel companies. He sold the group to Mittal Steel Company (now ArcelorMittal, which has steelmaking operations in the US) in 2005 for $4.5 billion, half in cash, half in stock.


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