Bloomberg is reporting that there will be no exceptions for Canada and Mexico when it comes to potential tariffs on steel and aluminum imports. The only way they get exempted from the tariffs will be if they sign a new North American Free Trade Agreement that’s better for America.
“Canada must treat American farmers better and Mexico must stop drugs from pouring into the U.S.,” Trump says. “Tariffs on steel and aluminum only come off if a new and fair NAFTA is signed.”
The Bloomberg report says it’s the latest sign that Trump’s plan to impose tariffs is overshadowing the NAFTA negotiations, which had already been yielding very little progress on the most contentious issues.
The Mexican peso and Canadian dollar extended their recent losses after Trump’s comments. The peso dropped to its lowest level in two months while the Canadian dollar was at its weakest level since last July.
Trump’s decision came last Thursday and caught negotiators off guard during the seventh round of talks. Canada is the biggest supplier of steel and aluminum to the U.S. and Mexico is the fourth-largest supplier of steel to America. Both countries have asked to be excluded but Trump’s senior trade adviser says the president doesn’t want any exemptions.
From the National Association of Farm Broadcasting News Service.