Trump’s trade threats scramble allies at home and abroad

 WASHINGTON — U.S. allies, blindsided by President Donald Trump’s pledge to slap stiff tariffs on steel and aluminum imports, scrambled on Monday to secure exemptions even as the president remained defiant in his pledge and White House officials sent contradictory messages behind the scenes about the eventual actions.

From Washington to Beijing, officials have warned that any such measures by the Trump administration could be met with retaliation. Trump insisted on Monday that he is not looking to start a trade war, although he repeated his assertion from last week that they are good for the U.S. economy.

Trump also threatened America's neighbors and closest trading partners — Canada and Mexico — saying Monday that the proposed tariffs would only "come off" for those nations if they are able to renegotiate the North Atlantic Free Trade Agreement in a manner that he finds "fair."

"If we don't make a deal I will terminate NAFTA," Trump said. "But if I do make a deal which is fair to the workers and to the American people, that would be, I would imagine, one of the points that we'll negotiate. It will be tariffs on steel for Canada and for Mexico."

 Canadian Prime Minister Justin Trudeau has called the tariff proposal “absolutely unacceptable,” and Canada's foreign minister, Chrystia Freeland, has threatened retaliatory measures if Canada isn’t exempted from the trade actions.

"We will continue to engage with all levels of the American administration in the coming days so that they understand that this proposal is unacceptable," Trudeau said on Friday.



Source: nbcnews

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