Trudeau, Trump talk tariffs


Canada, the top supplier of steel and aluminium to the United States market, has been temporarily exempted from the tariffs, along with Mexico.

Joseph Galimberti says Canada has to work very quickly to identify possible attempts to circumvent the USA tariffs by sneaking steel in through Canada and it must be prepared to initiate actions to stop it. In Trudeau's view, the USA wasn't just helping Canada - it helped itself by refraining from slapping tariffs on its No. 1 supplier of both steel and aluminum.

The trip comes after Canada won an exemption from tariffs on the two metals that the administration of U.S. President Donald Trump will levy on all countries except Canada and Mexico.

"One of the things I pointed out to the president is that the steel issue would actually make it harder to move forward on NAFTA", Trudeau said.

A heavy lobbying blitz by Canada after the tariffs were first announced March 1 helped convince the USA administration to exempt Canadian steel when the final announcement was made last week.

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Later, at a roundtable with industry leaders, he spoke again of the importance of steel to Hamilton, but said he was there to listen.

Trudeau said Canada already has "significant barriers" in place to prevent low-priced steel and aluminum from being dumped there, and is prepared to work with Washington to "do even more".

"The exemptions aren't a magical favour that was being done (for Canada)", Trudeau said.

"(That would) ensure the vitality of United States and North American manufacturing industries and. protect the economic and national security of the United States". Canadian aluminum is in your fighter jets.

He made the point by mentioning in his CNBC interview that he was a few kilometres from the Bagotville air force base, built during the Second World War to protect critical aluminum supplies required by the military. There is no better security partner in the world.

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Trudeau is now on a tour of Canadian steel towns to show his support to workers in the industry. So that whole issue of national security is off the table.

Other stops will include Hamilton, Sault Ste.

When Trump announced the 10 per cent tariffs on aluminium and 25 per cent on steel, he said Canada and Mexico could be exempted permanently if the renegotiation of the North American Free Trade Agreement (Nafta) is successful.

But the USA government also wants to make sure cheap steel being dumped into North America by Brazil, South Korea, China and other countries doesn't enter the United States through a Canadian back door.

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