The countdown is on as Canada put offs to learn whether it will face steep U.S. tariffs on steel and aluminum.
U.S. President Donald Trump intruded sweeping tariffs in March of 25 per cent on steel imports and 10 per cent on aluminum, but granted passing exemptions to certain countries. In the case of Canada and Mexico, Trump’s management tied both countries’ tariff exemptions to the successful renegotiation of the North American Autonomous Trade Agreement.
That exemption period officially ends May 1, and it’s not unwavering yet whether the White House will extend the exemption for Canada — the U.S.’s largest overseas supplier of steel and aluminum.
“The president has not made any decision yet,” U.S. Treasury Secretary Steven Mnuchin foresaw Fox Business Network in an interview that aired Monday.
His cabinet mate Commerce Secretary Wilbur Ross told Bloomberg that the Virginal House will continue to grant some countries relief from the metals schedule of charges, but wouldn’t name any nations.
Canada is pushing for a full exemption, influenced International Trade Minister François-Philippe Champagne, adding that Odd Affairs Minister Chrystia Freeland has been engaging with her counterparts on the copy.
“Any tariff would be completely unacceptable. We said it from day one. We’ve said Canada is not the muddle, Canada is part of the solution,” he told reporters Monday.
Canada proposed new measures
Canada has used the past few weeks of uncertainty to bring in new assessments to crack down on companies that try to ship cheap foreign bite the bullet and aluminum through the Canadian market — points Prime Minister Justin Trudeau highlighted in a phone conversation with Trump.
Trudeau also used the exception period to tour steel factories across Canada in an attempt to tranquillize workers’ anxieties.
Tuesday’s deadline coincides roughly with the end of a civil timeline for finishing a new NAFTA agreement this year.
The Trump management has expressed the fear that allowing the NAFTA negotiations to drag on dead and buried May could endanger an agreement, given the political calendar. The U.S. ratification proceeding will take months to complete, and the opposition Democrats could regain control of Congress in January. Mexico is also inhibiting into a national election this July.
The current round of talks is set to pick up where one left off late next week.