President Donald Trump’s latest trade salvo over steel and aluminum landed squarely in the middle of Nafta talks, overshadowing efforts by his own negotiators and those from his biggest export markets to update America’s most important free-trade agreement.

After a day of will-he-or-won’t-he chatter, Trump announced Thursday he intended to slap tariffs of 25 percent on steel imports and 10 percent on aluminum imports. Specifics are unclear, including whether some countries may still be exempt, but the implications rippled through the seventh round of talks on the North American Free Trade Agreement in Mexico City.

Canada threatened to fire back, in some of its toughest language against the Trump administration since Nafta talks began last year, and a person familiar with Mexico’s position said the nation plans to do the same. Canada is the top provider of both U.S. steel and aluminum imports, while Mexico is the fourth-biggest steel provider. Various industry groups condemned the U.S. move and warned it would start a trade war. Full Article