US tariffs against Canada are 'insulting,' Trudeau says
US tariffs against Canada are 'insulting,' Trudeau says
Donald Trump hints at new deal
04 June, 2018, 02:53
Trudeau said on Sunday that he is having "a lot of trouble getting around" that Canada has abruptly become "a national security threat to the United States".
Canadian Foreign Minister Chrystia Freeland said in a statement that the tariffs were "imposed under a false pretext of safeguarding USA national security".
The U.S. announced Thursday that it would extend tariffs - 25 percent on steel and 10 percent on aluminum - to Canada, Mexico and the European Union, citing national security concerns as the main reason for implementation.
"If the US rolls out trade measures including tariffs, all the agreements reached in the negotiations won't take effect", state-run Xinhua News Agency reported Sunday, citing a statement from the Chinese team that met with a USA delegation led by Commerce Secretary Wilbur Ross. Canada, Mexico and the European Union quickly announced plans to retaliate with their own tariffs on American goods.
Trump imposed the steel and aluminum penalties under a 1962 law that gives the president broad power to increase or reduce tariffs on goods deemed critical to national security.
The dragging on of the NAFTA talks was a key reason behind the USA move to target Canada and Mexico, but given the importance of that trade agreement to the continent's economy, neither US neighbour was deterred.
Asserting that he likes free trade, but wants fair trade, US President Donald Trump warned that he could impose reciprocal tariff on other countries.
Canadian officials have said that their proposed tariffs are meant to affect about $12.8 billion in goods coming from the US, roughly equal to the amount of Canadian goods hit by the Trump tariffs.
President Donald Trump says Canada has mistreated USA farmers on trade and officials there "must open their markets and take down their trade barriers!"
President Donald Trump's chief economic adviser is brushing off concerns over escalating trade disputes with a host of US allies as nothing but a "family quarrel".
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Canada's minister of foreign affairs has a message for the United States: "Please think hard about the message you're sending to your closest allies".
"If you consider that USA oil and gas companies spent $8 billion to $9 billion on pipe last year alone, this would increase material cost by more than $2 billion dollars per year if they sourced all of that material from outside of the United States", Ed Longanecker, president of the Texas Independent Producers & Royalty Association, told S&P Global Platts.
"At the G7 meeting in the Canadian ski resort of Whistler, British Columbia, Canadian Finance Minister Bill Morneau said he expressed to Mnuchin "our absolute view that this is absurd that Canada could in any way be a security risk".
He says, "this is what I regard as a family quarrel and the conversations are wide open and could well be solved in the months ahead as the conversations continue".
In addition to asking the U.S.to reconsider and reverse the tariffs, the six finance leaders noted that because of the actions taken by the USA, "collaboration and cooperation has been put at risk".
French Finance Minister Bruno Le Maire said the United States has only a few days to avoid sparking a trade war with its allies and it was up to Washington to make a move to de-escalate the tensions.
Mnuchin faced so much criticism from his counterparts that Japanese Finance Minister Taro Aso said he nearly "felt sorry" for the US finance chief.
"We're going to be polite, but we're not going to be pushed around", Trudeau said. "They have a $2-billion trade surplus with us, so it's not like the trade is imbalanced against the USA ... on this one".
Ross had said the delegations had discussed specific USA exports China might purchase to ease the $337bn trade imbalance, but the talks ended with no joint statement and neither side released details.
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