Mexico, Canada May Be Exempted From Section 232 Tariffs, White House Says

White House Press Secretary Sarah Sanders said that Mexico, Canada and other countries may avoid the soon-to-be-announced tariffs on steel and aluminum. "There are potential carve-outs for Mexico and Canada based on national security, and possibly other countries as well based on that process," she said during a March 7 press briefing. President Donald Trump is still expected to "sign something by the end of the week," she said.

Meanwhile, Council of Economic Advisers Chairman Kevin Hassett, testifying before politicians skeptical about proposed steel and aluminum tariffs, said that "these actions are still in development" and "how to treat Canada and Mexico is still in negotiations." Hassett was testifying at the Joint Economic Committee March 7. Both Democrats and Republicans questioned the wisdom of global tariffs on aluminum and steel, and Hassett defended them, saying net job losses, if that is the consequence, could be worth it to defend national security. Several Senators argued that the defense secretary said global tariffs aren't necessary to national security. Hassett said he trusted the president's judgment on that.

Rep. Don Beyer, D-Va., noted that the president repeatedly says that Canada has a huge trade deficit with the U.S. "Can you educate him on our Canadian trade surplus, please?" Hassett replied, "The president is pretty well educated on this." The economist, known to be an advocate of free trade, said that some people, for some purposes, choose to emphasize a goods deficit rather than looking at goods and services together. He defended that choice, since, he said, production jobs tend to pay more than service jobs.

Rep. Darin LaHood, R-Ill., asked Hassett to defend the idea that pulling out of NAFTA would be good for the American economy. Hassett said that past presidents tried to convince our trading partners to lower barriers, as we have. "The president's a very good negotiator, and he's intent on improving symmetries," he said. "The president is very serious about being a tough negotiator and standing up for American workers."