As the seventh round of NAFTA talks ended, Global Affairs Minister Chrystia Freeland tried to assuage concerns about how a trade war on steel and aluminum would affect the deal.
Concerns were raised when U.S. President Donald Trump posted on Twitter Monday morning that the tariffs won’t apply to Canada and Mexico if a “new and fair NAFTA agreement is signed.”
READ MORE: Donald Trump warns Canada won’t get a break on steel tariffs without ‘fair’ NAFTA deal
Freeland spoke to media after the talks ended later Monday, saying she was taking seriously the proposed 24 per cent tariffs on steel imports and 10 per cent tariffs on aluminum imports to the U.S.
So is Prime Minister Justin Trudeau, who called Trump on Monday to discuss the issue, sources told The Canadian Press.
Both leaders expressed a desire to end NAFTA negotiations, but Trudeau said the tariffs weren’t helping. The call was reportedly cordial, but the tariff issue wasn’t resolved.
Freeland maintained the tariffs – which would be imposed by Article 232 of the 1962 U.S. Trade Act that says tariffs could be applied for national security reasons – are a completely separate issue when compared to NAFTA talks, despite Trump’s tweet.
“I was going to make some kind of joke about how all of us should take a break from social media but, I think I’ll refrain from that,” she said, clarifying that she meant journalists be the ones taking the break.
WATCH: Freeland says tariffs and NAFTA are “quite separate” issues, despite Trump’s tweet
She admitted that the tariffs were discussed during NAFTA talks with U.S. Trade Representative Robert Lighthizer.
“I did deem appropriate to raise today with Ambassador Lighthizer even though it’s not his file because of the seriousness of the issue, and because Canada really does consider that acting against Canada on Section 232 would be completely unacceptable,” she said.
“But as far as we are concerned, these are separate negotiations.”
READ MORE: Steel and aluminum tariffs: From jobs to prices, how the new levy could affect Canadians
But the connection between the two trade issues’ files isn’t limited to social media.
Lighthizer said that the tariffs are an “incentive” for Canada and Mexico to complete trade talks quicker.
READ MORE: Donald Trump’s steel tariffs a ‘crazy idea’: Conference Board of Canada
“I presented it as a positive thing,” Lighthizer told reporters on Monday, adding: “It is my view that it’s an incentive to get a deal.”
In Washington on Monday, Trump spoke about combining the two issues at the White House.
“We’re not backing down… Right now, 100 per cent [chance we proceed with tariffs],” Trump said Monday in the Oval Office.
“But it could be a part of NAFTA.”
Asked if Canada was ignoring the ultimatum from Trump during the negotiations, she again reiterated that Canada is taking the situation seriously.
“I think we have been very clear, that we take very seriously the potential action by the U.S. on Section 232,” Freeland said, adding that last week’s statement on the tariffs still stood.
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Trump’s Twitter ultimatum
Freeland’s comments were spurred on by questions about the president’s earlier tweets where he appeared to suggest that Mexico and Canada may be exempt from the tariffs should the three countries sign a new NAFTA deal.
“We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A,” Trump tweeted.
REALITY CHECK: No, the U.S. doesn’t have a $17B trade deficit with Canada
In fact, the U.S. runs an overall surplus with Canada, when goods and services are both included.
“Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed,” the tweet continued.
“Also, Canada … must treat our farmers much better. Highly restrictive. Mexico must do much more on stopping drugs from pouring into the U.S. They have not done what needs to be done. Millions of people addicted and dying,” the president said in a series of tweets.
WATCH: Should Trump be using tariffs as negotiating tactics?
*with files from Reuters and the Canadian Press
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