UPDATE - Trump dangles deal on tariffs if trade deal redone

ADDS TRUMP REBUFFING TRADE WAR CONCERNS in GRAFS 8-9

By Michael Hernandez

WASHINGTON (AA) - President Donald Trump said Monday his recently announced tariffs on steel and aluminum imports will be removed only if a free trade agreement is renegotiated to benefit the U.S.

"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 said in a tweet. "Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed."

In a later tweet, he tried to further his case by touting protection for the U.S. "To protect our Country we must protect American Steel! #AMERICA FIRST".

Representatives from Mexico, Canada and the U.S. are meeting in Mexico City on Monday to wrap up the latest round of negotiations of the North American Free Trade Agreement, or NAFTA, that have been complicated by Trump's announcement of the new tariffs.

Trump announced last week the 25 percent tariff on steel and 10 percent tax on aluminum imports. America buys 16 percent of its steel annually from Canada, and Canada ranks as the number one buyer of American steel, which, according to the Canadian Steel Producers Association, evenly balances the total trade to CAN $12 billion yearly.

It is unclear when the tariffs would take effect but could happen as soon as this week.

Trump has framed the import penalties as an element of his agenda to put “America first”. Experts and business leaders have warned, however, that should the tariffs go ahead, the blowback could hurt U.S. industries, particularly in the event of a trade war with a major trading partner.

Trump has shrugged off such concerns, and again rebuffed them Monday after Republican House Speaker Paul Ryan urged the president not to pursue the plan.

"We're not backing down," Trump said.

During his Monday morning tweet storm, Trump aired grievances against Canada and Mexico, saying Ottawa must treat American farmers "much better", and Mexico City should do more to thwart the flow of illicit drugs into the U.S.

"They have not done what needs to be done. Millions of people addicted and dying," he said.