REPORT: Trump Tweets Link Tariffs On Canadian Steel & Aluminum To NAFTA Negotiations

The tariffs are being used as leverage.

In a series of Tweets, US President Donald Trump said potential tariffs on Canadian & Mexican steel and aluminum are dependent on NAFTA negotiations:

“We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed. Also, Canada must..

…treat our farmers much better. Highly restrictive. Mexico must do much more on stopping drugs from pouring into the U.S. They have not done what needs to be done. Millions of people addicted and dying.”

This fits with a usual pattern with Trump, where he will make a controversial statement, and then use it as leverage to negotiate back towards a more modest position while seeking better terms.

As a result, even more pressure has been added to the NAFTA renegotiations, as the health of our steel industry is now on the line.

That said, it’s important to note that Trump is getting a ton of pressure from within the US – and even within his own administration – to exempt Canada from the tariffs, especially considering that our steel trade with the US is almost perfectly balanced already.

Spencer Fernando

Photo – Twitter