U.S. President Donald Trump increased pressure on Canada and Mexico over trade on Monday, saying the two could avoid being caught in his planned hefty tariffs on steel and aluminum if they ceded ground in talks on a new NAFTA trade deal.
Trump also said, after a weekend of tweets in which he threatened to hit German automakers with tariffs, that Mexico needed to do more to stem the flow illegal drugs to the United States, something not encompassed by the talks over the North American Free Trade Agreement.
Trump’s determination to push ahead with a 25 percent tariff on steel imports and a 10 percent duty on aluminum has prompted threats of retaliation from the European Union, Canada, China and Brazil among others. It has roiled world stockmarkets as investors worry about the prospect for an ever-escalating trade war that would derail global economic growth.
His plan, announced on Thursday, has also hit resistance from some senior figures in his own Republican Party.
House of Representatives Speaker Paul Ryan, a Republican whose state of Wisconsin would be hit by proposed European counter-tariffs on Harley Davidson motorcycles, urged the White House on Monday not to push ahead with the action.