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ACA writes Trump, urging him to reconsider steel, aluminum tariffs

ACA writes Trump, urging him to reconsider steel, aluminum tariffs

"We will continue working toward securing a definite and permanent exemption from those tariffs", Trudeau said earlier.

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.

In a phone call from the smelter town, Trudeau thanked Trump for the "special consideration" extended to Canada on the tariffs, and emphasized the importance of preserving "mutually beneficial" supply chains to support jobs and businesses on both sides of the border, his office said.

Freeland is coming off a tense week which started with the seventh round of NAFTA negotiations making little progress towards an agreement but ended with a sigh of relief when Canada and Mexico secured an exemption from new USA tariffs on steel and aluminum imports.

Canada has been particularly recalcitrant in making any concessions on its dairy policy, a key issue for the USA where dairy producers are suffering economically. "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". Mexico is also a member nation of the trade deal. Asked if he viewed the tariff exemption as a form of economic blackmail, Trudeau demurred and said his country is also interested in reshaping NAFTA. 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 steel tariff investigation was launched to see the impact of steel imports on USA national security.

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"The case in 232 is the argument that for national security reasons we need to maintain a high level of production of some particular commodity", says Nicholas Lardy, senior fellow at the Peterson Institute for International Economics.

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.

His cross-country tour, with stops in Quebec, Sault Ste.

Trump may want to prop up the aluminum industry, for example, but to make it requires bauxite, a material that has become too expensive to mine in the United States, The Wall Street Journal reported recently. Marie, Ont., and Regina, Sask.

Trudeau said the national security argument the US has made when it comes to considering tariffs for Canadian steel and aluminum makes no sense - a refrain he's hammered in recent weeks. While the penalties take effect later this month, Trump has encouraged countries to try negotiating exemptions for themselves.