Canada and Mexico ‘may be’ Exempted from U.S. Tariffs

The White House has announced that some countries may be exempted from the planned tariffs on metal imports.

The White House spokeswoman Sarah Sanders said Canada and Mexico may be exempted from the planned tariffs on ‘national security grounds’.

“There are potential carve-outs for Mexico and Canada based on national security, and possibly other countries, as well, based on that process,” Ms. Sanders said.

“There are potential carve-outs for Mexico and Canada based on national security, and possibly other countries, as well, based on that process.”

Meanwhile, China has threatened against a trade war. “A trade war is never the right solution,” China’s Foreign Minister Wang Yi told reporters in Beijing. “In a globalized world, it is particularly unhelpful, as it will harm both the initiator and the target countries. In the event of a trade war, China will make a justified and necessary response.”

The European Union has condemned the U.S. plans to impose tariffs on steel and aluminum. The EU said it would jeopardize the European jobs.

Cecilia Malmstrom, the EU trade commissioner, said the EU has set out plans as a retaliatory measure against the U.S. move.

The retaliatory measures include, as BBC reported, “higher import duties on bourbon, peanut butter, cranberries, orange juice, steel, and industrial products.”

“We have serious doubt about that justification. We cannot see how the European Union, friends, and allies in NATO, can be a threat to national security in the US. We find that assumption deeply unjust,” Ms. Malmstrom said.

The U.S. President Donald Trump has announced the imported steels will face 25% tariff with a 10% tariff on aluminum products.

“In a globalized world, it is particularly unhelpful, as it will harm both the initiator and the target countries. In the event of a trade war, China will make a justified and necessary response.”

Peter Navarro, the White House trade policy adviser, said the tariffs would start in 15 to 30 days including a clause “a clause that does not impose these tariffs immediately on Canada and Mexico.”

The U.S. tariff plans have sparked an international outcry.  The Canadian Prime Minister Justin Trudeau said the proposed tariffs were ‘absolutely unacceptable’ and he is “confident we’re going to continue to be able to defend Canadian industry”.

The International Monetary Fund (IMF) said in a statement, “The import restrictions announced by the U.S. President Donald Trump are likely to cause damage not only outside the U.S. but also to the U.S. economy itself, including to its manufacturing and construction sectors, which are major users of aluminum and steel.”

“The WTO is clearly concerned at the announcement of US plans for tariffs on steel and aluminum. The potential for escalation is real, as we have seen from the initial responses of others,” WTO Director-General Roberto Azevedo said in a statement.


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