U.S. trade partners Canada, Mexico and the European Union await President Donald Trump’s decision on whether or not to impose heavy tariffs on steel and aluminum imports as soon as Friday.
Trump granted these parties a temporary reprieve in March from paying the new taxes, but the clock runs out at midnight on Thursday, at which point they could be facing a 25-percent tax on steel and 10-percent tax on aluminum if a decision is not made to reverse the taxes before that.
Canada and Mexico anticipated renegotiating the North American Free Trade Agreement with the U.S. before the reprieve was up to ultimately avoid the heavy tax burden, but that goal has not yet been reached, as the foreign nations refused to concede to the U.S. demands that 40 percent of every car be built in areas with higher wages. In terms of car parts, 75 percent come from North America, in addition to 70 percent of steel being North American as well. (RELATED: Time Is Ticking For Trump’s Team On NAFTA Talks)
The Trump administration has remained tight-lipped about the impending decision as the deadline nears, but sources close to the deliberations told Politico the silence might be indicative of yet another deadline extension for America’s trade allies.
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