President Trump’s administration is set to roll out new trade tariffs on steel and aluminum produced in other countries, setting the rates at 25% and 10% respectively.
The new policy is aimed at getting better trade deals for the United States, and to reduce the trade deficit the United States has with other countries.
While most experts agree that these tariffs are glaringly pointed at China, they will provide leverage with other countries as well. Canada and Mexico, who do plenty of trade with the United States, could receive an exemption depending on how negotiations over changes to the North American Free Trade Agreement (NAFTA) go.
According to the Telegraph:
“Mr Trump had said on Monday that Canada and Mexico would only be excluded after the successful renegotiation of the North American Free Trade Agreement.”
It comes as no surprise since the President has often expressed his dislike of NAFTA. He has longed to renegotiate the terms of NAFTA to either favor the United States or give Americans a better deal then what is currently in place.
It is also interesting to note that President Trump’s administration is looking at each country on an individual, case-by-case to insure the fairest trade deals are struck for all invovled.
President Trump has frequently stated that Mexico will be paying for his border wall. He may have found his best bargaining chip for that project.