Donald Trump suggests Canada, Mexico could win tariff exemption

US says time running short for NAFTA talks, floats bilateral deals

If Canadians are hoping to be spared from American tariffs, they may be disappointed.

Between 2013 to 2016, Canada was the largest source of steel and aluminum imports to the USA, with the trade critical to both countries.

In another comment on the NAFTA talks on Monday, Trump reprised two running criticisms of Canada and Mexico.

He is being repeatedly pressed on the Canada issue in these interviews.

US says time running short for NAFTA talks, floats bilateral deals
Donald Trump suggests Canada, Mexico could win tariff exemption

The White House official said the proposed 10 percent tariff on aluminum imports would result in a mere Dollars 25,000 increase in the price of a USD 330 million Boeing 77.

Bush held firm until the European Union said it planned to impose tariffs on USA items produced in key swing states, such as oranges from Florida and automobiles from MI. Of special concern to Canada is the auto industry - and how these tariffs would play havoc with cross-border supply chains. Canadian Finance Minister Bill Morneau said the country was negotiating on NAFTA with a partner that has "changed the terms of the discussion". The European Union objected and said it would impose retaliatory tariffs on the United States. The exact timing was unclear as the tariff documentation had to be drafted and go through a variety of reviews, a process that takes days, an administration official said. Conversely, it is unlikely to create significant new employment in these two sectors given that current US steel and aluminium production remain close to a 10-year average.

"We're talking about tariffs for all steel and all aluminum imports from everywhere in the world", he continued.

Yesui said: "China does not want a trade war with the Untied States, but we will absolutely not sit idly by and watch as China's interests are damaged".

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Amid speculation that Trump may bow to pressure and amend his tariff plan before it's put into effect in the coming weeks, Navarro reiterates that there would be no country exemptions on the tariffs of 25 percent on steel and the 10 percent on aluminum.

Officials have so far been evasive when asked how the three nations can continue trying to update NAFTA at a time when the US president is about to take a highly protectionist measure.

"Big trade imbalance", Trump said.

The most contentious issues include a proposal to require more auto manufacturing in the USA, seasonal barriers to farming goods, access to US procurement deals, dispute resolution mechanisms, and a clause that would terminate the deal after five years.

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The European Union has has drawn up a hit list of USA products from bourbon to Harley Davidson motorbikes on which to apply tariffs if Mr Trump follows through with the plan to apply global duties on aluminium and steel.

Cecilia Malmström, EU Commissioner for Trade, has told the BBC that Levi jeans and bourbon are on a list of potential goods that could be slapped with reprisal tariffs.

However, the United States maintains a trade surplus with Canada of almost $8 billion in 2016, and in the first nine months of 2017 the surplus was almost $3 billion.

"And to suggest that we're going to bring back these industries is a little naive", said the former Kellogg chairman and CEO.

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Most countries say they will take cases to the World Trade Organization (WTO), but that has always proved to be a long, drawn out affair.

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