The Trump administration will initially exclude Canada and Mexico from stiff tariffs on steel and aluminum imports, an exemption they would lose if they fail to reach an updated NAFTA agreement with the U.S., White House trade adviser Peter Navarro said on Wednesday.
The two nations won’t be subject to tariffs on their steel and aluminum if they sign a new North American Free Trade Agreement that meets the satisfaction of the U.S., Navarro said, adding that other American allies could use a similar system to ask for an exemption.
If NAFTA talks fall through, Canada and Mexico would face the same tariff as other nations, expected to be 25 percent on steel and 10 percent on aluminum.
“Here’s the situation, and the president has made this public,” Navarro said. “There’s going to be a provision which will exclude Canada and Mexico until the NAFTA thing is concluded one way or another.”
(c) 2018, Bloomberg · Jennifer Jacobs, Andrew Mayeda, Toluse Olorunnipa