Donald Trump sets metals tariffs but exempts Canada and Mexico

President Donald Trump pressed ahead with the imposition of 25 per cent tariffs on steel imports and 10 per cent on aluminum on Thursday but exempted Canada and Mexico, backtracking from earlier pledges of tariffs on all countries.

Trump has offered relief from steel and aluminum tariffs to countries that "treat us fairly on trade," a gesture aimed at putting pressure on Canada and Mexico to give ground in separate talks on the North American Free Trade Agreement (NAFTA), which appear to be stalled.

Trump has also demanded concession from the European Union, complaining that it treated American cars unfairly and has threatened to hike tariffs on auto imports from Europe.