Mnuchin urged Trump to exempt Canada from steel and aluminum tariffs

Mnuchin urged Trump to exempt Canada from steel and aluminum tariffs

Mexico promised retaliatory measures after the USA announced it would go forward with its plan to impose steel and aluminum tariffs.

That put it behind only Canada in terms of the value of U.S. exports. It will impose a 20% tariff on US pork, apple and potato imports and 20% to 25% levies on cheeses and bourbon.

The White House and the National Security Council did not immediately return CNN requests for comment.

Mexico imports so much USA pork - almost one-third of what's consumed - that the government says it will waive tariffs on up to 350,000 tons of pork imported from other nations to avoid destabilising the market.

"Perhaps the most important message from tariffs is that they are based on flimsy rationale - and that makes it hard to predict which industry might be next", RBC's Janzen noted.

In addition to other moves against American-made products, Mexican officials set tariffs on US pork shoulder and legs at 10 percent, and they will rise to 20 percent by July 5.

VideoKey U.S. allies and trading partners voiced their anger with U.S. President Donald Trump's tariffs on steel and aluminum, and powerful donors within the Republican Party announced efforts to support free trade.

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The White House recently confirmed President Trump is considering separate trade deals with Canada and Mexico rather than a new NAFTA deal.

A Canadian government official, speaking on the condition of anonymity to discuss diplomatic relations, said there have always been one-on-one talks as part of the NAFTA negotiations but noted that the trade pact is a three-country agreement and that any resolution would require all three countries to sign on together.

Mr Mnuchin and Mr Kudlow are often referred to as the "globalists" in the administration and they have clashed with US Trade Representative Robert Lighthizer and White House trade adviser Peter Navarro, who are more hawkish on China. "It provides the most certainty for American companies and is the best way we can sell "Made in America" products".

"Plans have been laid in place", he said."We'll see what happens". That falls short of the US$200 billion over two years that the Trump administration has demanded the Chinese government buy to address a yawning trade imbalance.

The group says that there are 110,000 United States jobs directly tied to U.S. pork exports to Mexico as well as to other countries.

Disruption to U.S. -Canada trade could also affect cross-border supply chains that have grown during the NAFTA era.

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