Mexico, Canada and others may be exempted from US tariffs

WASHINGTON (AP) — The White House said today Mexico, Canada and other countries may be spared from President Donald Trump's planned steel and aluminum tariffs under national security "carve-outs," a move that could soften the blow amid threats of retaliation by trading partners and dire economic warnings from lawmakers and business groups.

Press secretary Sarah Huckabee Sanders told reporters the exemptions would be made on a "case-by-case" and "country-by-country" basis, a reversal from the policy articulated by the White House just days ago that there would be no exemptions from Trump's plan.

The update came as congressional Republicans and business groups braced for the impact of expected tariffs of 25 percent on imported steel and 10 percent on aluminum, appearing resigned to additional protectionist trade actions as Trump signaled upcoming economic battles with China. Trump was expected to announce the tariffs Thursday afternoon.

The looming departure of White House economic adviser Gary Cohn, a former Goldman Sachs executive who has opposed the promised tariffs, set off anxiety among business leaders and investors worried about a potential trade war.

"We urge you to reconsider the idea of broad tariffs to avoid unintended negative consequences to the U.S. economy and its workers," 107 House Republicans wrote in a letter to Trump.

At the White House, officials were working to include language in the tariffs that would give Trump the flexibility to approve exemptions for certain countries.

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