The CBC is reporting that White House spokesperson Sarah Huckabee Saunders and two members of US cabinet have suggested that Canada and Mexico might escape crushing tariffs on steel and aluminum. Ms. Sanders said Canada and Mexico could get a “carve-out” from the tariffs for reasons of national security. She is reported to have said that other allies might ask for such exemptions on a case-by-case basis. Earlier Wednesday, Commerce Secretary Wilbur Ross told reporters that Trump has “indicated a degree of flexibility.” “If we can work something out with Canada and Mexico they will be exempted. It’s not inconceivable that others could be exempted on a similar basis,” Ross said. The avoidance of already announced tariffs on steel (25 percent) and aluminum (10 percent) would badly hurt Canada’s economy. In recent days US administration officials have said that Canada would not be excluded from tariffs but might receive certain exemptions. The wording is careful but if genuine seems to represent a critical opportunity for Canada.Treasury Secretary Steven Mnuchin said the administration was “definitely going to end up” with the across-the-board tariffs Trump is seeking — 25 per cent on steel imports, 10 per cent on aluminum. “But, again, there will be a mechanism where, to the extent that the president wants to give waivers, the president can do that,” he told Fox Business. CBC
