National Post

CANADA, MEXICO MAY BE SPARED FROM PROPOSED TARIFFS.

Hints of exceptions for U.S. neighbours TRADE

- ALEXANDER PANETTA

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 last- minute diplomatic scramble, the White House is now hinting that the impending tariff announce- ment might have some particular exceptions based on national- security considerat­ions for the U.S. neighbours.

“There are potential carve- outs 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-bycase and country-by-country basis.”

T he f ormal t ariff 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,” Trudeau said.

“There’s many discussion­s on this going on in the United States right now. We are going to make sure we’re doing everything we need to do to protect Canadian workers — and that means waiting to see what the president actually does.”

A full-court, 11th-hour diplomatic press was underway 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.

The fact that Canada might be hit with tariffs had actually become a leading talking point for critics bashing the Trump plan. From Capitol Hill, to cable TV, to the Wall Street Journal editorial pages, numerous commentato­rs ridiculed the idea of a supposed national- security tariff applied to Canada.

A poll this week suggested the measures are unpopular.

In the final diplomatic push, Foreign Affairs Minister Ch ry st ia Freeland spoke with congressio­nal leader Paul Ryan, and Can- adian Ambassador David MacNaughto­n was to dine Wednesday with U.S. national security adviser H. R. McMaster.

Defence Minister Harjit Sajjan chatted with Pentagon counterpar­t James Mattis, UN ambassador Marc-Andre Blanchard spoke with U.S. counterpar­t Nikki Haley, and Natural Resources Minister Jim Carr raised the issue with Energy Secretary Rick Perry at a conference in Texas.

Trudeau, meanwhile, spoke with the president this week.

A source familiar with the last-minute scramble likened it to a high-stakes, realitysho­w content, with a dramacourt­ing U.S. president at the centre of the production: “( It’s a) last- episode- of-TheApprent­ice kind of thing.”

Canada is the No. 1 exporter of steel and aluminum into the U.S ., which is looking to impose tariffs under a rarely used national- security provision in a 1962 law, which some critics have called either illegitima­te or likely to start copycat measures that threaten the internatio­nal trading system.

Some trade hawks in the administra­tion argue the tariffs must apply to everyone to be effective. If the goal is to keep out low- cost internatio­nal steel, with excess Chinese supply dragging down the entire global market, they say the U.S. can’t allow any supply in at low global prices.

The counter- argument was that these measures might help some American steel workers, but hurt far more workers in other sectors which use steel, damage the economy as a whole and poison America’s relationsh­ips with the rest of the world.

LAST EPISODE OF THE APPRENTICE KIND OF THING.

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