"If we're able to make a deal with Canada and Mexico, then there will be no reason for the tariffs", Trump said, repeating a comment he made earlier this week suggesting both countries should capitulate to usa demands in renegotiations of the North American Free Trade Agreement (NAFTA) in order to avoid the costly tariffs.
Guajardo said on Tuesday that if the USA government were to push ahead with metals tariffs that included Mexico, the country would be forced to respond with politically targeted tit-for-tat responses.
Following the seventh round of meetings in Mexico City that concluded on Monday (5 March), United States Trade Representative Robert Lighthizer observed that in spite of the hard work made by negotiators, "we have not made the progress that many had hoped in this round".
But suffice to say - the ongoing NAFTA talks and President Trump's threat to impose tariffs on steel and aluminum have had a significant effect on the loonie. "We lost $800 billion on trade ... we are going to take care of it". If they're not going to make a fair NAFTA deal, we're just going to leave it this way.
Mr. Mnuchin spoke at a House appropriations subcommittee hearing on the Treasury Department's 2019 budget.
Canada is the No. 1 exporter of steel and aluminum into the US, which is looking to impose tariffs under a rarely used national-security provision in a 1962 law, which some critics have called either illegitimate or likely to start copycat measures that threaten the worldwide trading system.
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Business leaders, meanwhile, continued to sound the alarm about the potential economic fallout from tariffs, with the president and CEO of the U.S. Chamber of Commerce raising the specter of a global trade war.
The dispute over tariffs has exposed a rift between advocates of free trade, who have long dominated GOP circles, and a president who has railed against China and pushed for more protectionist trade policies.
Kuehl said the organization continues to stress that "trade is not a zero-sum game". "We had a very bad deal with Mexico, we had a very bad deal with NAFTA".
"We urge the administration to take this risk seriously", Donohue said.
Ryan, R-Wis., called for a "more surgical approach" that would help avert a trade war.
He also appeared to seek to divide Mexico and Canada in the talks, saying the United States was making more headway with its southern neighbor than with Canada.
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But in public remarks, Canadian politicians have vowed, much like Trump, to protect their farmers' interests.
Some trade hawks in the administration argue the tariffs must apply to everyone to be effective. And we think they're prudent and appropriate. In addition, Ontario and Quebec have elections scheduled later this year, and the United States also faces mid-term elections in November.
Freeland reiterated Monday that the Canadian government will stand up for workers, and respond with counter-measures to any tariffs.
Even if a preliminary accord can be reached, Trump will likely continue to attack Mexico in the run-up to the US mid-term elections in November, said Juan Carlos Romero Hicks, a member of the Mexican Senate's foreign relations committee.
Since Canada is America's largest source of imported steel and aluminum, and recent domestic economic data has fallen short of expectations, it should come as little surprise that the announcement hurt the loonie. As reported in the New York Times, a Heritage Foundation analysis of Commerce Department data finds that US mills and smelters that supply aluminum and steel raw materials today employ fewer than 200,000 people, while the USA companies that buy those inputs for making everything from cars, to beer cans, to chicken coops employ more than 6.5 million workers.
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