Trump Sends Mixed Signals on Steel Tariffs, Canada, Mexico and NAFTA

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President Trump suggested March 5 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 鈥渕ust treat our farmers much better,鈥 while Mexico 鈥渕ust do much more on stopping drugs from pouring into鈥 the United States.

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

RELATED: Trump鈥檚 steel and aluminum trade threat hangs over NAFTA talks



Shortly after noon March 5, Trump said 鈥渨e鈥檙e not backing down鈥 on tariffs. 鈥淲e had a very bad deal with Mexico, we had a very bad deal with NAFTA.鈥

He said the tariffs 鈥渃ould be a part of NAFTA.鈥

Contrary to Trump鈥檚 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鈥檚 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鈥檚 plan, and some say they may authorize counter-tariffs targeting American products from bourbon to blue jeans.

RELATED: Trudeau threatens to leave NAFTA rather than 鈥榯ake any old deal鈥

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

鈥淗e has made a decision at this point, 25 and 10,鈥 said Commerce Secretary Wilbur Ross, speaking Sunday on NBC鈥檚 Meet The Press. 鈥淚f he for some reason should change his mind, then it鈥檒l change.鈥

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

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.

Many Republican allies of Trump oppose the tariff plan. In addition to concern about higher prices, they said American jobs could be lost in industries that rely on steel and aluminum.

鈥淔or every steel worker job that might be saved because of a tariff, our country will lose even more American jobs in auto plants, construction, and so many other industries,鈥 said David McIntosh, president of the anti-regulation Club for Growth.

Citing political as well as economic impacts, McIntosh said that 鈥渢ariffs will also harm the pro-growth effects of the tax cuts, stall the economy, incite a trade war, and help hand the (2018 congressional) election to the Democrats.鈥

Distributed by Tribune Content Agency, LLC

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