U.S. hints Canada might be exempt from steel tariffs

WASHINGTON Canada may get a special “carve-out” allowing it to avoid the impact of U.S. President Donald Trump’s controversial steel and aluminum tariffs, a White House spokeswoman suggested Wednesday.

After days of drama and a lastminute diplomatic scramble, the White House is now hinting that the impending tariff announcement might have some particular exceptions based on national-security considerations for the U.S. neighbours.

“There are potential carveouts for Canada and Mexico based on national security — and possibly other countries as well, based on that process,” Sarah Sanders said. “That would be a case-by-case and country-by-country basis.”

The formal tariff announcement could come as early as Thursday.

Intense debates have been going on within the Trump administration about whether to offer any exemptions — some want a hardline approach where the tariffs apply to every country; some want the opposite, meaning full relief for Canada and other allies.

And this week the administration has been hinting at a possible middle-of-the road approach: temporary relief for Canada and Mexico, with the threat of tariffs as a U.S. negotiating weapon at the NAFTA bargaining table.

Prime Minister Justin Trudeau said he wants to withhold judgment until the final details are out.

“We know from experience that we need to wait and see what this president is actually going to do,” he said. “We are going to make sure we’re doing everything we need to do to protect Canadian workers ...”

A full-court, 11th-hour diplomatic press was under way Wednesday. It occurred in Ottawa, Washington, New York and even in Texas, where a number of Canadian officials were reaching out to American peers — some of whom had been pleading the Canadian case. Foreign Affairs Minister Chrystia Freeland, for instance, spoke with congressional leader Paul Ryan.

The fact that Canada might be hit with tariffs had actually become a leading talking point for critics of Trump’s plan, from Capitol Hill, to cable TV, to the Wall Street Journal editorial pages. A poll this week suggested the measures are unpopular.