U.S. may tie NATO givebacks to exemptions from tariffs

Foreign governments wary of process

WASHINGTON— U.S. allies seeking to avoid the steel and aluminum tariffs approved by President Donald Trump might be asked to step up their financial commitments to NATO.

Treasury Secretary Steve Mnuch in told CNBC in a Friday interview that the president will consider national security, noting that Mr. Trump wants to be sure that NATO gets more funding from European allies who Mr. Trump has previously criticized for not contributing enough.

“If we’re in NATO, he wants to make sure that NATO gets more money so that NATO can protect all of us and fulfill its goal,” Mr. Mnuchin said, underscoring Mr. Trump’s push to get NATO allies to pay 2 percent Representative Robert Lighthizer, on defense. but the president will

Mr. Trump drew on make the ultimate decision, a rarely used national security senior administration official grounds to place a 25 told reporters Thursday. Specific percent tax on steel imports steel and aluminum and 10 percent tax on imported products could also be excluded aluminum. Only and that authority Canada and Mexico — both will rest with Commerce Secretary partners in the North American Wilbur Ross. Free Trade Agreement Mr. Lighthizer was expected being renegotiated — were to be in Brussels this excluded from the tariffs. weekend for meetings with

The Treasury secretary European and Japanese said he has been speaking trade officials. with his foreign counterparts The EU has warned that and “my expectation is it could retaliate with tariffs there may be some other on U.S. steel, agricultural countries that he considers and other products. inthe next two weeks.” Mr. Trump suggested before

Other countries seeking he signed the orders exemptions from the tariffs imposing the tariffs that will have to make their case Australia and “other countries” hrough U. S. Trade countries” could also be exempted. He discussed the tariffs by telephone on Friday with Prime Minister Malcolm Turnbull of Australia and President Mauricio Macri of Argentina, the White House said.

P. Welles Orr, senior trade adviser at the law firm Miller & Chevalier, said foreign governments are already asking how the exemption process will work.

“The short answer is, we don’t know the specifics yet,” said Mr. Orr, who was assistant U.S. trade representative in President George H.W. Bush’s administration. “It’s certainly going to be chaotic. ... The business community sure hopes the administration will carefully do all the work it needs to do to make this an easy and transparent process.”