Prime Minister Justin Trudeau is brushing off the idea that Canada might be coerced into making concessions at the NAFTA negotiating table under the pressure of tariff threats from the U.S.
This story by the Canadian Press originally appeared in Automotive News Canada.
The U.S. government has been dropping hints that the decision to excuse Canada and Mexico from tariffs on steel and aluminum might only be temporary, and somehow dependent on the result of trade negotiations.
The American administration has expressed a desire to get a NAFTA deal in a hurry and some prominent members have been suggesting that the threat of steel and aluminum tariffs might prod the negotiations along.
Trudeau rejected the idea that the tariff exemption was some kind of benevolent American favor that required repayment. In Trudeau’s view, the U.S. wasn’t just helping Canada – it helped itself by refraining from slapping tariffs on its No. 1 supplier of both steel and aluminum.
Trudeau’s view has prominent support: A newly released poll of leading economists organized by the University of Chicago has found rare unanimity on the topic, with zero percent of economists surveyed saying they believe tariffs will help Americans.
