The US President Donald Trump had signed two proclamations that would put a 25% tariff hike on steel and 10% tariff hike on aluminum imports. At present, Canada and Mexico have been exempted from this import tariff. These two nations and the US are looking to renegotiate the North American Free Trade Agreement (NAFTA) that was signed in 1994.
The Canadian finance minister Bill Morneau is looking at the aluminum and steel tariff as a positive spin. He feels that the discussion about the aluminum and steel tariff increase with us clearly shows how strong their relationship is.
Bill said that he had talked to the US Treasury secretary Steven Mnuchin for 3 times this week. This shows that both USA and Canada are willing to work together. Both understand that they are trading together and they are a major part of integrated North America.
The US Commerce Secretary Wilbur Ross feels that President Trump would be offering some sort of leniency on the trade tariff for Canada and Mexico. There is also a feeling that Trump will be dropping on the steel and aluminum import tariffs on his North American neighbors if the NAFTA talks become more favorable to the US.