Mar 8, 2018

Trump launches his trade war, with reprieves for Mexico & Canada

Donald Trump during a meeting on March 6. Photo: Andrew Harrer-Pool/Getty Images

President Trump signed two proclamations today that go into effect on March 23, one imposing a 25% tariff on steel and the other a 10% tariff on aluminum. The president confirmed that Canada and Mexico are exempt from the tariff increases, citing national security agreements — specifically ongoing NAFTA negotiations. He called the existing taxes an economic and national security "disaster" adding, "we're finally taking action to correct."

The big picture: This will still meet fierce opposition from free traders and large sections of the business community. But it’s not nearly so bad as it originally appeared. Trump initially wanted to impose these tariffs on everyone with no exceptions and no room for exclusions. There’s now plenty of wiggle room.

A factor that influenced Trump: In his conversations with Canadian leader Justin Trudeau he became convinced that he could use the threat of steel and aluminum tariffs as leverage to get a better deal in the NAFTA negotiations, according to sources with direct knowledge. Trump’s team viewed Canada as a bigger problem than Mexico in these negotiations and given Canada sells so much of those metals to the US, Trump saw an opportunity to squeeze them. (Whether it works is an open question.)

The details: The proclamations will be "flexible," allowing the U.S. to address security relationships in an "ironclad way" to defend its steel and aluminum industries, said a senior administration official. Trump explained that they will show "great flexibility and cooperation towards [nations] who are really friends of ours both on a trade basis and on a military basis." The administration is open to allowing some countries to negotiate for exemptions on a "case-by-case" basis, pending separate, bilateral agreements.

What's next: Countries have threatened to protest the increased tariffs, with the EU warning of "tit-for-tat" tariffs of 25% on $3.5 billion worth of American products. We could see an international trade war looming with subsequent hits to the U.S. and global economies.

Go deeper

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Brazil on Monday recorded for the first time more deaths from the novel coronavirus in a single day than the United States, Reuters notes. Brazil reported 807 deaths from COVID-19 in the past 24 hours, compared to 620 in the U.S. for the same period.

By the numbers: Almost 5.5 million people have tested positive for the virus as of Monday, and more than 2.2 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 14.6 million tests). The U.K. is reporting over 36,900 deaths from the coronavirus — the most fatalities outside the U.S.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 8:30 p.m. ET: 5,490,954 — Total deaths: 345,962 — Total recoveries — 2,228,915Map.
  2. U.S.: Total confirmed cases as of 8:30 p.m. ET: 1,662,250 — Total deaths: 98,218 — Total recoveries: 379,157 — Total tested: 14,604,942Map.
  3. World: Italy reports lowest number of new cases since February — Ireland reports no new coronavirus deaths on Monday for the first time since March 21 — WHO suspends trial of hydroxychloroquine over safety concerns.
  4. 2020: Trump threatens to move Republican convention from North Carolina — Joe Biden makes first public appearance in two months.
  5. Public health: Officials are urging Americans to wear masks over Memorial Day.
  6. Economy: New York stock exchange to reopen its floor on Tuesday — White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Charities refocus their efforts to fill gaps left by government.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Updated 44 mins ago - Politics & Policy

In photos: Authorities issue warning as Americans venture out for Memorial Day weekend

Ocean City in New Jersey on May 25. Photo: Donald Kravitz/Getty Images

Authorities urged Americans to maintain social distancing and wear masks to protect against the spread of the novel coronavirus amid reports of packed beaches and bars during the Memorial Day weekend.

Details: Law enforcement stepped up beach patrols, and there were crowded scenes in several places, notably at Lake of the Ozarks bars in Missouri and at Daytona Beach and on the Gulf Coast in Florida, per AP. Police dispersed crowds in some places, ABC notes. But many Americans did take precautions against COVID-19 as they ventured outside for the long weekend, some three months after the pandemic began in the U.S.