Trump Tariffs May be Good for NAFTA Talks

Trump Tariffs May be Good for NAFTA Talks

"If national security is that Mexico sends steel, or Canada sends steel, two of the [U.S.] great allies, then I don't know what national security has to do with this", Solis said at a news conference before Trump's decision to exclude Mexico.

China's Commerce Ministry criticized Trump for acting unilaterally rather than working through the World Trade Organization.

"But I accept what the president said", Trudeau added, "that as long as there is a free-trade deal in North America there won't be tariffs".

In a speech in the U.S. on Sunday, Mr Trump lashed out at the European Union, saying they erected "horrific" trade barriers based on environmental and other regulations. "We just want fairness", Mr. Trump said. The president announced 25 percent tariffs on foreign steel and 10 percent tariffs on foreign aluminum.

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

OTTAWA-As the United States tries to light a fire under NAFTA negotiations, Canadian Foreign Affairs Minister Chrystia Freeland says Canada will not be bullied or pressured by the United States as part of those talks.

Chantale Gagnon says that while many in the industry breathed a sigh of relief when Canada and Mexico were temporarily exempted from the tariffs, they remain anxious that the measure could be reversed. For if Trump makes the U.S. an erratic and chaotic trade partner, Australia will be seen by China, South Korea, India and ASEAN as safe, reliable and on side in the Asia-Pacific.

The tariffs are being applied on the grounds of national security, which the president said was a "very important aspect" of the NAFTA accord that came into force in 1994. It was still hoping for a clearer indication about the exemption process.

The bloc says that it's a close ally of the US and therefore any import levies on national security grounds are unjustified. They also fear that other countries hit by the new tariff policy will redirect their steel exports to Europe.

Because of foreign competition, the Commerce Department said, the US steel industry has closed six oxygen furnace facilities and idled another four since 2000, representing more than half of such plants in the U.S.

"An in-kind tariff by the United States' top ten trading partners would expose close to 42 per cent of total USA exports, leading to a widening in the trade deficit", they said.

Critics point out that the tariffs will do more harm than good to the overall USA economy.

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. What the United States is using is a security excuse. The outbreak of trade wars will act like a tax on US consumers and negatively impact millions of "Increased costs will make our industry less competitive and harm American workers, consumers, and our economy".