With Trump's deadline looming, Canada waits for news on steel tariffs

The countdown is on as Canada waits to learn whether it will face steep U.S. tariffs on steel and aluminum.

U.S. President Donald Trump imposed sweeping tariffs in March of 25 per cent on steel imports and 10 per cent on aluminum, but granted temporary exemptions to certain countries. In the case of Canada and Mexico, Trump's administration tied both countries' tariff exemptions to the successful renegotiation of the North American Free Trade Agreement.

That exemption period officially ends May 1, and it's not clear yet whether the White House will extend the exemption for Canada —  the U.S.'s largest foreign supplier of steel and aluminum.

"The president has not made any decision yet," U.S. Treasury Secretary Steven Mnuchin told Fox Business Network in an interview that aired Monday.

His cabinet colleague Commerce Secretary Wilbur Ross told Bloomberg that the White House will continue to grant some countries relief from the metals tariffs, but wouldn't name any nations.

Prime Minister Justin Trudeau said he's spoken to Trump on the issue and is confident the administration understands tariffs would hurt jobs on both sides of the border.

"We continue to work with the administration but we are are optimistic that they understand that this would be a bad thing for both of our economies," Trudeau told a crowd in Vancouver.

International Trade Minister François-Philippe Champagne said Ottawa has been pushing for a full exemption, adding that Foreign Affairs Minister Chrystia Freeland has been engaging with her counterparts on the issue.

"Any tariff would be completely unacceptable. We said it from day one. We've said Canada is not the problem, Canada is part of the solution," he told reporters Monday.

Canada introduced new measures

Canada has used the past few weeks of uncertainty to bring in new measures to crack down on companies that try to ship cheap foreign steel and aluminum through the Canadian market — points Prime Minister Trudeau emphasized in a recent phone conversation with Trump.

Trudeau also used the exemption period to tour steel factories across Canada in an attempt to ease workers' anxieties.

Tuesday's deadline coincides roughly with the end of a political timeline for finishing a new NAFTA agreement this year.

The Trump administration has expressed the fear that allowing the NAFTA negotiations to drag on past May could endanger an agreement, given the political calendar. The U.S. ratification process will take months to complete, and the opposition Democrats could regain control of Congress in the fall mid-term elections. Mexico is also heading into a national election this July.

The current round of talks is set to resume late next week.