Let's remain calm while we await details on President Donald Trump's threat to impose tariffs on imported steel and aluminum.
Trump says the tariffs are needed to balance the playing field and punish nations that violate existing trade agreements, which adds to the US trade deficit and erodes American jobs. Massive relocation of companies & jobs.
Trump ignited fears of a trade war and an outcry from major trading partners with his surprise announcement about the steel and aluminium tariffs, and an even broader threat to impose reciprocal tariffs on all imports from countries that impose duties on United States exports.
He added, "Also, Canada must ... treat our farmers much better".
"Unless they can do something for us, as an example if the European Union takes off some of the terrible barriers that make it impossible for our product to go into there, then we can start talking, otherwise we'll leave it the way it is", he said.
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All three countries have been mired in trade talks since last August that were sparked by Trump's insistence that NAFTA has been a raw deal for American manufacturing workers. Trump said the U.S. had been "ripped off" by other countries on trade.
Trump is expected to finalize the tariffs later in the week, posing a tough challenge for US Trade Representative Robert Lighthizer, Canada's Foreign Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo.
The administration says the tariffs are necessary to preserve the American industries - and that imposing them is a national security imperative.
Trump has threatened to withdraw NAFTA pact since the 2016 campaign, saying the 24-year-old deal allowed manufacturers to relocate to Mexico and take advantage of cheaper labour, The Washington Post reported. "Make no mistake: If the president goes through with this, it will kill American jobs - that's what every trade war ultimately does". "There will be tariffs on steel for Canada and for Mexico".
Trump hopes the imposition of tariffs will help him to bring back jobs to the USA which he alleged to have been stolen by other countries that acted unfairly.
He plans to introduce 25% tariffs on steel imports and 10% tariffs on aluminium imports. When services - not jut goods - are figured in, the USA has a trade surplus with the Great White North.