Mexico imposes tariffs on $3 billion worth of USA exports

Thursday, 07 Jun, 2018

According to the sources, Trudeau pressed Trump on how he could justify the tariffs as a "national security" issue.

"Didn't you guys burn down the White House?" he reportedly shot at Trudeau.

That plan fell through when the White House tried to insist that he agree to including a so-called "sunset clause" in the deal. Trump has accused Canada of ripping off the United States through unfair trade practices, and Canadian officials have said Trump is using inaccurate information to attack a USA ally. Despite the tensions, Trump is sticking to his guns, saying that the United States "must, at long last, be treated fairly on trade". "Chairman Brady believes one free trade agreement with Canada and Mexico is best for America".

The Commerce Department said foreign production of steel and aluminum was driving down prices and hurting USA producers, creating a "national security threat". In 2017, it was the second-largest importer of US steel and steel products, which will now face an additional 25 percent tariff, in line with what the USA has imposed.

Mexico has been a valuable trade partner, as it has become a significant source of USA imported crude oil. Otherwise they may decide to have a Canada First moment and retaliate against Trump's tariffs in a warlike manner.

Mnuchin presented the option to Trump in a meeting of the administration's most senior economic policymakers, including director of the National Economic Council Larry Kudlow, Commerce Secretary Wilbur Ross, Trade advisor Peter Navarro, trade representative Robert Lighthizer and chief of staff John Kelly.

Canadian Prime Minister Justin Trudeau called the tariffs "totally unacceptable" and "an affront" to Canadian soldiers who have served alongside Americans in numerous conflicts.

The Trump administration announced that it was moving ahead with 25 percent tariffs on imported steel and 10 percent tariffs on imported aluminum, sparking major backlash.

Ministers from Germany, France and Britain have already written to US officials urging them to shield European companies working in Iran from getting caught up in Washington's new sanctions on Tehran.

US stocks, apart from those of steel and aluminum producers, have fallen sharply in response to Trump's recent tariff announcements and other actions against trading partners. USA stocks were trading higher on Wednesday.

Experts say that duty could usher in $100 million losses every year for USA pork farmers. The United States trade representative office told the Washington Post that the USA actually has a trade surplus with Canada.