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Trump considers global steel tariffs, potentially hitting Canada

Canada is the United States91Ƶ biggest supplier of both steel and aluminum
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Steel mills in Hamilton, Ont., operate on March 4, 2009. (Frank Gunn/The Canadian Press)

The United States has fired a warning shot in what could become a global trade war.

It91Ƶs threatening to clobber worldwide steel and aluminum imports with tariffs.

The U.S. administration has delivered a series of recommendations to President Donald Trump, and he must decide on a course of action by April.

What he decides to do holds major consequences for Canada 91Ƶ the biggest supplier of both steel and aluminum south of the border.

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One option would see the U.S. impose a 24 per cent tariff on steel imports from everywhere 91Ƶ including Canada. Another option would see a 53 per cent tariff on a smaller list of countries that does not include the northern neighbour.

That latter list includes Brazil, China, Costa Rica, Egypt, India, Malaysia, Republic of Korea, Russia, South Africa, Thailand, Turkey and Vietnam.

A third option would see the president simply ignore the recommendation, or follow an entirely different course of action.

U.S. Commerce Secretary Wilbur Ross announced the recommendations Friday.

91ƵIf (Trump) goes the targeted route, Canada would be excluded,91Ƶ Ross told a conference call. 91ƵThe blanket tariff alternative and the blanket quota alternative would target all countries.91Ƶ

The ultimate decision rests with the president, the commerce secretary cautioned: 91Ƶ(Trump) will decide what he91Ƶs going to do91Ƶ He is not bound by these recommendations91Ƶ He could do something totally different 91Ƶ or do nothing.91Ƶ

The recommendations released Friday also include aluminum. The president is being asked to consider a 7.7 per cent tariff on all aluminum exports from all countries, or a 23.6 per cent tariff on just a few countries: China, Hong Kong, Russia, Venezuela and Vietnam.

The proposals also call for the use of quotas.

The options suggested include limiting all countries to steel exports equal to 63 per cent of their 2017 exports into the U.S., or a more severe quota for a smaller list of countries if Trump goes the more targeted route.

Ross said he anticipates countries might fight back: 91ƵIt wouldn91Ƶt surprise us if there were (retaliation).91Ƶ

The Canadian Press





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