- White House Press Secretary Sarah Huckabee Sanders said new tariffs on steel and aluminum will have carve outs for Canada and Mexico.
- Sanders said the carve outs would be “based on national security” and could eventually extend to other countries.
- President Donald Trump and other administration officials previously said there would be no exemptions for any nations.
New US tariffs on steel and aluminum could have carve outs for Canada, Mexico, and other key allies, White House press secretary Sarah Huckabee Sanders said Wednesday, potentially softening the blow of the incoming trade restrictions.
“There are potential carve outs for Mexico and Canada based on national security and possibly other countries as well based on that process,” Sanders told reporters Wednesday.
Sanders also said President Donald Trump would sign the final version of the tariffs by the end of the week. Multiple reports indicate Trump’s signature could come as soon as Thursday. The press secretary was vague when asked how countries could qualify for potential exemptions.
“That would be a case-by-case and country-by-country basis, but it would be determined whether or not there would be a national security exemption,” Sanders said.
The tariffs, which act as a tax on imports, are set to be enacted using a little-used provision of trade law that allows the president to act to curtail imports of a good on national security grounds. The intent of the provision is to prevent the US from becoming too dependent on imports of a key good from any country that may become an adversary.
Canada, Mexico, and other allies said the White House’s justification made little sense given the countries’ relationship with the US.
Sanders’ hint at exemptions comes after Trump and other administration officials, such as top trade adviser Peter Navarro, said there would be no carve outs for any nation.
But such a move could head off some of the more aggressive countermeasures from allied countries. The tit-for-tat scenario of a trade war has worried economists and investors after Trump’s announcement last Thursday.
The new restrictions are set to come as the US, Mexico, and Canada attempt to renegotiate the North American Free Trade Agreement, or NAFTA. The talks over the massive trade deal were thrown for a loop after Trump’s unexpected tariff announcement.
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