Ryan, other conservatives fear trade war from Trump's tariffs

Ryan, other conservatives fear trade war from Trump's tariffs

Ryan, other conservatives fear trade war from Trump's tariffs

A worker inspects wire rod at TIM stainless steel wire factory in Huamantla, in the Mexican state of Tlaxcala October 11, 2013.

President Donald Trump began the week by issuing a pair of early-morning tweets that say American tariffs on imported steel and aluminum will only come off if there's a new NAFTA agreement that's fair to the United States.

Trump announced last week the 25 percent tariff on steel and 10 percent tax on aluminum imports.

"We are extremely anxious about the consequences of a trade war and are urging the White House to not advance with this plan", Mr Ryan's spokeswoman AshLee Strong said.

"NAFTA, which is under renegotiation right now, has been a bad deal for United States of America".

Speaking to reporters at the White House, Trump reiterated his support for the new taxes - amid wavering Republican support and global backlash.

Industry groups have warned that the move would be "devastating" to trade. If anything, he has repeatedly upped the ante.

Trump, in an Oval Office meeting with Israeli Prime Minister Benjamin Netanyahu, said Monday that he wouldn't back down on his proposals. "So I actually think this is long overdue", said Democratic candidate Conor Lamb.

"We want Trump to abandon the plan", Yoshihisa Tabata, executive director of the Japan Aluminium Association told Reuters on Monday by phone. In Europe, shares in German auto giants Volkswagen AG VOWG_p.DE and BMW recovered from earlier losses.

"Such measures would inflict pain on global trade flows and our industry, but above all hurt workers and consumers on both sides of the Atlantic", German Chancellor Angela Merkel's spokesman Steffen Seibert said Monday.

Representatives from Mexico, Canada and the US are meeting in Mexico City on Monday to wrap up the latest round of negotiations of the North American Free Trade Agreement, or NAFTA, that have been complicated by Trump's announcement of the new tariffs. "Should restrictions be imposed on Canadian steel and aluminum products, Canada will take responsive measures to defend its trade interests and workers", Canada's minister for foreign affairs, Chrystia Freeland, said in a statement after the announcement.

Industries that are large users of steel and aluminum have been especially vocal in their opposition to the tariffs, including automakers, aerospace companies and others. "It's the wrong way to incentivize the creation of a new & modern NAFTA", Economy Minister Ildefonso Guajardo said on Twitter. I know a lot of ministers from a lot of countries have been talking with the president.

Morneau's comments came hours after Trump tweeted he would nix aluminum and steel tariffs if NAFTA negotiations end with a new agreement that's more favourable for the U.S.

That has included the threat that Washington will withdraw from NAFTA if it is not satisfactorily renegotiated. And I understand I just got a call from the people who are right now in Mexico City negotiating NAFTA, Mexico and really Canada want to talk about it.

Trump has slammed free trade deals struck by his predecessor as "very stupid" and indicated that he will pursue an "America first" approach to his government.

However, the United States maintains a trade surplus with Canada of almost $8 billion in 2016, and in the first nine months of 2017 the surplus was almost $3 billion.

"Also, Canada must treat our farmers much better. Highly restrictive. Mexico must do much more on stopping drugs from pouring into the U.S".

Peter Navarro, a top White House trade advisor, said the administration would consider exemptions on a case-by-case basis but "no country exclusions". Republican leaders of the House Ways and Means Committee, meanwhile, circulated a letter opposing Trump's tariff plan.

It is unclear when the tariffs would take effect but could happen as soon as this week.

In the wake of the announcement, Republicans haven't been shy about their displeasure with the Trump administration's decision.

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