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Tariff exemption a sigh of relief

Tariff exemption a sigh of relief

Freeland is coming off a tense week which started with the seventh round of NAFTA negotiations making little progress towards an agreement but ended with a sigh of relief when Canada and Mexico secured an exemption from new US tariffs on steel and aluminum imports.

"National security is a very important aspect of this deal, and if we're making the deal on NAFTA, this will figure into whether or not there are tariffs on Canada and Mexico", says the president.

The EU urged Mr Trump not to head down "a dead end" road of protectionism and warned of a damaging trade war over his new steel and aluminium tariffs.

In a speech in the USA on Sunday, Mr Trump lashed out at the European Union, saying they erected "horrific" trade barriers based on environmental and other regulations. "Big Deficit. If not, we Tax Cars etc", wrote Donald Trump in Twitter.

Those talks will have to resume next week after failing to yield assurances on whether the European Union and Japan would be spared the 25 per cent tariffs on steel and 10 percent tariffs on aluminium. House Speaker Paul Ryan, R-Wis., said he disagrees with the move, and other congressional Republicans are hoping to block the duties with legislative action.

The European Commission accused Trump of "cherry-picking" data to distort the debate in a transatlantic dispute that threatens to become a trade war. Trump's chief economic adviser, Gary Cohn, is resigning, reportedly because of his oppositions to the tariffs.

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Trudeau rejected calls by some Quebec union leaders to take a harder line in NAFTA talks and leave the table if Canada can not get a better deal. "We have to see in what form they are able to justify and rationalize it", she added.

The result is that even some of the U.S.'s closest trading partners are bewildered about where the announcement leaves them.

U.S. Trade Rep. Robert Lighthizer met Saturday with European Trade Commissioner Cecilia Malmstroem to discuss the tariffs and the exemption procedures.

"Mexico reiterates that the negotiation of NAFTA must not be subject to conditions outside of that process". Canada and Mexico account for a quarter of the steel imported by the U.S. While no further bilateral meetings are planned at the moment, contacts are ongoing as the European Union is racing against time to secure an exemption before the aluminum and steel tariffs are enacted in less than two weeks.

Labor finance spokesman Jim Chalmers says steel destined for the USA from other countries will now be dumped below cost in Australia. We're just doing it with less people, and that's mostly about productivity. The EU has compiled a list of products valued at more than 2.8 billion euros that includes everything from lipstick to kidney beans to motor boats that it would hit with its own 25 percent duties, while Japan and South Korea have threatened a challenge at the World Trade Organization. If our neighbors to the north call Trump's bluff, dairy farmers such as those of central NY - the No. 3 dairy producing state in the USA - could be collateral damage. What the U.S. is using is a security excuse. "Increased costs will make our industry less competitive and harm American workers, consumers, and our economy".