Trump, Justin Trudeau talk amid tariff threats

President Trump and Canadian Prime Minister Justin Trudeau discussed the North American Free Trade Agreement, the White House said Tuesday, amid tensions between the two leaders over Trump’s threat to impose tariffs on steel and aluminum imports.

Trump and Trudeau spoke by phone on Monday “to address trade and the ongoing NAFTA negotiations in Mexico City,” the White House said in a summary of the call.

“President Trump emphasized his commitment to a NAFTA agreement that was fair to all three countries, noting the current agreement leaves the United States with a trade deficit,” the White House noted.

Trump announced last week that he plans to impose a 25 percent tariff on all imported steel and a 10 percent tariff on all imported aluminum. As the largest exporter of steel to the U.S., Canada was dismayed with Trump’s proposed measure, and Canadian leaders have worked to convince the administration to carve out an exemption for their country.

Trudeau called Trump Monday evening to lodge his concerns about the tax on Canadian steel and aluminum directly with Trump, according to Canadian media.

Amid warnings from both Republicans and Democrats about the potential consequences of imposing tariffs, Trump has hinted this week that he may consider using the duties as a bargaining chip to secure better terms for the U.S. in NAFTA renegotiations. The president tweeted on Monday that his threatened tariffs “will only come off” if Canada and Mexico concede to a “new & fair NAFTA agreement.”


Critics have suggested the tariffs could spark a trade war if countries retaliate against the U.S. by taxing American goods they import, inflicting enough damage on other industries to wipe out any benefits Trump’s tariffs might offer the steel and aluminum sectors.

What’s more, experts have said higher prices for the metals could cost jobs in industries that use steel and aluminum to manufacture their products, and economists have warned that consumers may ultimately pay more for goods made with those materials.

Trump, Commerce Secretary Wilbur Ross, and Peter Navarro, Trump’s top trade adviser, have defended the impending tariffs by arguing the move will force companies to purchase American steel and aluminum, thereby leveling the playing field for domestic producers.

Administration officials are conducting NAFTA talks in Mexico City.

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