Trump postpones decision on imposing steel and aluminum tariffs on Canada to June 1

With just hours remaining before Canada's exemption from new U.S. tariffs on steel and aluminum was set to expire,the United States postponed its decision on whether to impose the tariffsuntil June 1.

U.S. President Donald Trump ordered sweeping tariffs in March of25 per cent on steel imports and10 per cent on aluminum, but granted temporary exemptions to certain countries.In the case of Canada and Mexico, Trump's administration tied both countries' tariff exemptions to the successful renegotiation of theNorth American Free Trade Agreement.

Canada's exemption period was officially set to endat midnight April 30. But late Monday, Trump decided to give Canada, Mexico and the European Union another month to work out a deal with the Americans.

The Trump administration issued a statement saying it had come to a final agreement with South Korea on steel imports and had reached agreements in principle on steel and aluminumwith Argentina, Australia and Brazil.

"The Administration is also extending negotiations with Canada, Mexico, and the European Union for a final 30 days. In all of these negotiations, the Administration is focused on quotas that will restrain imports, prevent transshipment, and protect the national security," the statement said.

Earlier Monday, Commerce Secretary Wilbur Ross told BloombergNewsthat the White House would continue to grant some countries relief from the metals tariffs, but wouldn't name any nations.

A White House official said the only thing that could stop the tariffs from being imposed on Canada was a new presidential order.

"Absent any additional presidential proclamation, all tariffs would go into effect at midnight," the official said. "So in order for the exemptions to be extended or made permanent, a new proclamation would have to come from us like the original ones did."

Prime Minister Justin Trudeau said earlier Monday he'dspoken to Trump on the issue and was confident the administration understands tariffs would hurt jobs on both sides of the border.

"We continue to work with the administration but we areoptimistic that they understand that this would be a bad thing for both of our economies," Trudeau told a crowd in Vancouver.

Trudeau on steel and aluminum tariffs

6 years ago

Duration 0:53

Prime Minister Justin Trudeau expresses optimism that Canada's exemption from US steel and aluminum tariffs will continue

International Trade Minister Franois-Philippe Champagne said Ottawa has been pushing for a full exemption, adding that Foreign Affairs Minister ChrystiaFreelandhas been engaging with her counterparts on the issue.

"Any tariff would be completely unacceptable. We said it from Day 1. We've said Canada is not the problem, Canada is part of the solution," he told reporters Monday.

A spokesperson for Freelandexpressed hope the U.S. will not impose tariffs.

"Canada will continue to work to secure good, stable jobs forsteel and aluminum workers on both sides of the border," said press secretaryAdam Austen in an email to CBC News.

"As the prime minister said today, we remain confident that the U.S. administration understands that tariffs would hurt American jobs as much as they would hurt Canadian jobs."

Canada introduced new measures

Canada has used thepast few weeks of uncertaintyto bring in new measuresto crack down oncompanies that try to ship cheap foreign steel and aluminum through the Canadian market pointsTrudeau emphasized in a recent phone conversation withTrump.

Trudeau also used the exemption period to toursteel factories across Canada in an attempt to ease workers' anxieties.

Tuesday's deadline coincides roughly with the end of a political timeline for finishing a newNAFTAagreementthis year.

The Trump administration has expressed the fear that allowing the NAFTAnegotiations to drag onpast May couldendanger an agreement, given the political calendar.The U.S. ratification process will takemonths to complete, and the opposition Democrats could regain control of Congress in the fall midterm elections. Mexico is also heading into a nationalelection this July.

The current round of NAFTA talks is set to resume late next week.

'This is really playing to a political base for President Trump'

6 years ago

Duration 7:05

Laura Dawson, director of the Wilson Centre's Canada Institute, on whether she thinks Canada will receive an extension to its temporary exemption from U.S. steel and aluminum tariffs.