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Trump’s tariffs on allies appears tied to NAFTA renegotiations

A reason behind President Trump’s decision to impose steel and aluminum tariffs on Canada, Mexico and the EU appears to be tied to NAFTA renegotiations.

Canadian Prime Minister Justin Trudeau says NAFTA talks broke down Tuesday when Vice President Mike Pence demanded that any deal contain a sunset clause, which means the free trade agreement would expire automatically in five years. Trudeau refused.

The 25 percent tariff on steel and 10 percent tax on aluminum went into effect for those U.S. allies at midnight. U.S. agriculture groups are upset and bracing for retaliation.

Mexico has declared retaliation immediately on U.S. pork legs and shoulders, some fruits, cheeses and other food products. Canada’s list reportedly contains many U.S. ag and food products, including poultry.

Trump issued a statement saying the days of the U.S. being taken advantage of for decades on trade “are over.” Trump said he conveyed to Trudeau that the U.S. will agree to a fair deal on NAFTA or “there will be no deal at all.”

 

 

 

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