‘If’ NAFTA 2.0 proceeds, Trudeau wants to feel ‘confident’ on tariffs

With deadline in jeopardy, Canadians ‘working on a broad range of alternatives,’ PM says As the Trump administration continues to link the lifting of steel and aluminum tariffs to a successful conclusion of trade talks, Prime Minister Justin Trudeau says Canadians need to feel confident about what will happen ‘if ’ they move forward. Speaking at a press conference before leaving the United Nations General Assembly in New York to return to Ottawa, Trudeau said he’s discussed the tariffs the Americans justify on “national security” grounds in many conversations with the U.S. president. Donald Trump insisted “a few times” that “if we renegotiate NAFTA ... there will be no need to worry about these other things,” Trudeau said. Getting the right deal for Canada, Trudeau said, “involves obviously feeling confident about the path forward, as we move forward, if we do, on a NAFTA 2.0,” he said, including a “lack of punitive tariffs that we consider are unjust.” The U.S. steel industry continues to operate below its capacity, so the Trump administration believes these tariffs protect domestic jobs. They’ve also helped increase prices, and resulted in profits, for the U.S. industry. But the administration’s use of provisions intended to protect industries vital to national security is controversial, and now subject to a challenge at the World Trade Organization from countries who believe they unfairly manipulate global trade to the U.S.’s benefit. When the U.S. reached a preliminary agreement in principle with Mexico last month, it did not agree to lift steel and aluminum tariffs with that country, although it did include a side letter that would cap automotive exports from Mexico in return for not adding more national security tariffs on Mexican cars and parts.As a country providing significantly more steel and aluminum to the U.S. market, Canada is more reluctant to sign on to a deal that doesn’t guarantee an end to national security tariffs between the two trading partners.