Trump's Trade Tariffs Could Signal A New Global War

Miramar Marine Corps Air Station in San Diego on Tuesday. Credit Doug Mills  The New York Times

"To impose tariffs that would hurt workers on both sides of the border - it's not like that that we'll negotiate a better NAFTA deal".

The U.S. has said further delays might imperil the negotiations, with an outsider candidate leading polls for Mexico's July 1 election, and with Trump's party in danger of losing control of the U.S. Congress.

Previously, trump said that the negotiations on NAFTA for him to play a special role, and if they fail, the duty may be imposed and for Canada and Mexico.

Trump has railed against major global trading partners, most recently by imposing a tariff on steel and aluminum exports, but granted an exemption to Canada and Mexico as the three countries approach a reorganization of NAFTA, the trade agreement Trump has threatened to tear up.

Looking at the situation from the outside, many believe Canada and Quebec have dealt with the situation quite well, by rallying those in the U.S.to their cause. "While we are grateful that our trading partners, Canada and Mexico, are now exempt, it is our view that these tariffs will quickly become a tax on the fix and maintenance of vehicles, a tax that will ultimately be paid for in higher fix prices by the American auto owner". He added that national security was an important part of that deal and, if a deal is made, "this will figure into the deal and we won't have the tariffs on Canada or Mexico". "The industry is not in decline in terms of output, so arguing that we need to put on tariffs now to preserve a steel industry that is essential to national security I think is a bit of a stretch", Lardy says.

In a letter submitted to President Donald Trump, the Auto Care Association urged the administration to reconsider imposing tariffs on imports of steel and aluminum due to unintended negative consequences it may have on the US economy and the auto care industry.

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She is to meet US Trade Representative Robert Lighthizer, Commerce Secretary Wilbur Ross, Congressional leaders and others.

On the subject of national-security tariffs, Trudeau told CNN: "Canadian aluminum is in your fighter jets". So that whole issue of national security is off the table.

Canada is the biggest supplier of steel and aluminum to the United States but the steel sector accounted for only 22,000 direct jobs and represented 2 percent of exports a year ago. Canadian steel is in your tanks.

Prime Minister Justin Trudeau is in Hamilton on Tuesday for the second leg of his cross-Canada tour of steel plants, and he's likely to get an earful from local steelworkers.

Trudeau has wrapped up his tour of Hamilton, late this afternoon he was off to Sault Ste. Marie, Ont., and Regina, Sask. The talks had been scheduled to end this month, but all sides plan to keep working to try to reach an agreement no matter how long it takes.