Trump's Steel, Aluminum Tariffs Exempt Canada, Mexico

WASHINGTON (Reuters) – U.S. President Donald Trump’s tariffs on steel and aluminum imports will start in 15 days with initial exemptions for Canada and Mexico and the possibility of alternatives for other countries, a senior administration official said on Thursday.

Trump’s sudden push for the tariffs last week triggered fears of a global trade war and rattled financial markets. U.S. stocks pared gains on Thursday after the administration official’s comments.

The official told reporters the tariff proclamations will allow other countries to discuss with the administration “alternative ways” to address the national security threat caused by their steel and aluminum exports to the United States, the official said.

The tariff plan has angered U.S. allies, including Canada, Mexico, Britain and members of the European Union, who argue that their exports to the United States do not pose a threat to U.S. national security. Some, including the EU, have threatened retaliatory tariffs on U.S. products such as bourbon whiskey and Harley-Davidson motorcycles.

The exemptions for Canada and Mexico would start immediately with an unspecified duration. Their continuation depends partly on progress in negotiations to modernize the North American Free Trade Agreement, the official said. He added that NAFTA was an important part of the U.S.-Canada-Mexico security relationship.

“If Canada and Mexico were to be excluded, we would perhaps maybe have to raise the tariffs on everybody else – and modestly I might add, modestly – to ensure that our steel and aluminum industries are defended,” he said.