"But if I do make a deal which is fair to the workers and to the American people, that would be, I would imagine, one of the points that we'll negotiate; it will be tariffs on steel for Canada and for Mexico", Trump said.
On Monday, Trump declared that he will use the tariffs as leverage in the negotiations to update NAFTA with Canada and Mexico, California's two largest export markets. NAFTA, which is under renegotiation right now, has been a bad deal for United States of America. "Massive relocation of companies & jobs", Trump wrote.
Under pressure at home and overseas over his announcement of sanctions on imported aluminum and steel, President Trump indicated Tuesday there may be flexibility about how they are applied to some countries - if they play ball in return.
".treat our farmers much better. We will soon be starting reciprocal taxes so that we will charge the same thing as they charge us", he said. On Friday, Trump tweeted that "trade wars are good, and easy to win", as the USA is locked in disadvantageous deals and stands to lose less from a ramping up of financial barriers.
USA stocks opened lower on Monday as investors remained concerned about the increasing likelihood of a global trade war.
Thirty-four percent of those surveyed said they approved of Trump's handling of trade in general, while 54% said they disapproved.
Those include explore possible changes to the provision of the Trade Expansion Act of 1962 - known as Section 232 - that allows the president to impose unlimited tariffs if a federal investigations determines it poses a threat to national security.
Mr Mackenzie said it is too early to tell how the tariffs, which are aimed at protecting USA producers, will affect BHP, but he said he is concerned the restrictions could damage the current optimism toward free trade.
Trump believes that because the United States buys more from other countries than it exports, there is a huge trade imbalance that disadvantages US workers and companies.
"I don't think so; I don't think you're gonna have a trade war, no", he said.
German vehicle companies urged policymakers on Monday to avoid a trade war with the United States "at all costs".
Indications are that the administration will impose a 25 percent levy on imported steel and a 10 percent levy on aluminum, although it is not clear whether all USA trading partners will be affected. He also said it would divide the USA and its allies.
Canadian Foreign Minister Chrystia Freeland, Mexican Economy Minister Ildefonso Guajardo and U.S. Trade Representative Robert Lighthizer are due to make separate statements to the media at a joint event later on Monday, the sources said.
On its part, China, the largest trading partner of the USA with annual trade worth over $660 billion, will not take it lying down.