Trump to drop tariffs if revised NAFTA deal signed


Canada has offered a counter-proposal to change the way vehicle costs are measured and use this to determine the rules of origin.

Asked about Ryan's position on Monday, Trump told reporters, "No, we're not backing down". America has taken steps like this before, and did not slide down any slippery slope to autarky.

But there are economists on the more liberal end of the spectrum defending the tariffs.

With a tone of warning to Canada, Trump on Monday tweeted, "We have large trade deficits with Mexico and Canada".

Ryan notes through his spokeswoman that the new tax overhaul "has boosted the economy and we certainly don't want to jeopardize those gains". "We are also looking at safeguard measures on our own steel and aluminum, and yes, we are looking at possibilities to retaliate, meaning that we will also put tariffs on U.S. imports to the European Union". "So we'll see what happens".

Even a number of Democrats have said NAFTA should be reworked, but Canada and Mexico have resisted Trumps strong-arm tactics, it said.

Mexico's chief technical negotiator Kenneth Smith said there was positive dialogue during the seventh round of talks involving the United States, Mexico and Canada, which closes Monday. "This policy will have a detrimental impact on the economic growth of [New York] and the nation".

Jerry Dias, president of the Unifor union, which represents auto workers, said last week that the Canadian team in Mexico City was "absolutely furious", and he demanded that Canada walk away from the talks if the U.S. went ahead with the tariffs. "We're going to build our steel industry back, we're going to build our aluminum industry back".

Ford said in a statement that the tariffs "could result in an increase in domestic commodity prices - harming the competitiveness of American manufacturers".

Some Democratic lawmakers heralded the deal for protecting American industries.

British Prime Minister Theresa May telephoned Mr Trump at the weekend and told him the trade tariffs would hurt America's allies.

Gareth Stace, the director of trade body UK Steel, said: "In short, these measures would cause serious damage to the prospects of many steel producers here". He invoked the rarely-used Section 232 of the 1962 Trade Expansion Act which authorizes the Secretary of Commerce to conduct comprehensive investigations to determine the effects of imports of any article on the US national security.

It's a decision Malcolm Turnbull is sweating on.

Speaking in the Oval Office, Donald Trump said the U.S. had lost $800 billion a year in trade. The root cause of problems in the steel and aluminium sectors lies in global overcapacity. "So, while it might affect an individual producer for a little while, overall, it's not going to be much more than a rounding error". The Dow lost 491 points on Thursday and Friday.

The greenback rose against most peers with the Canadian dollar leading losers.

Still, Brady said he was impressed with the progress made during the week, emphasizing it was important to finish negotiating a modern, pro-growth agreement that would boost manufacturing and jobs.