This summer, when Sen. Jack Reed (D-DE), in a hearing covering the steel tariffs imposed on "national security" grounds, asked Lighthizer whether Canada really posed a national security threat, Lighthizer responded, "absolutely". He explained that if a significant supplier such as Canada were exempt from the tariffs, it would undercut their protective effect.
One detail left to be sorted is whether allies like Canada, Germany, and Mexico will be exempt from the tariffs.
Although Japan has negotiated free-trade agreements with a handful of smaller trading partners, including members of Asean, the Association of Southeast Asian Nations, Tokyo has always insisted that agricultural produce like rice and dairy stay exempt from the tariff reductions.
The postponement came after the Americans added a further $60m-worth 60m-worthan steel tofthEuropeanworth that had already been exempted from the tariffsteel
In his remarks on Thursday, the President indicated that Canada and Mexico would be exempted from the tariffs, but only if they reach an agreement with the U.S. on reforming NAFTA an outcome that is far from guaranteed.
It is noteworthy that in all the White House's bluster, it has exempted from the tariffs 300 Chinese products worth about $50 billion a year.
"We had a very bad deal with Mexico, we had a very bad deal with NAFTA". "Right now, 100%, but it could be a part of NAFTA," he said, opening the door to the possibility that Canada and Mexico could be exempted from the tariffs.
For example, Caterpillar, the heavy equipment manufacturer in Peoria, Ill., successfully lobbied to have some of the steel it imports from Britain and elsewhere exempted from the tariff rules.
On Thursday evening, just before the tariffs on steel and aluminum took effect, the White House took even more countries off the list: Australia, Argentina, South Korea, Brazil and the European Union are all exempt from the metals tariffs as well, at least until May 1.
It is, however, important to note that some goods are already exempt from the EU tariffs, where the country concerned has a trade agreement.
