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Trump warns countries of reciprocal tariff

04 June 2018

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".

"The idea that the Canadian steel that's in military vehicles in the United States, the Canadian aluminum that makes your, your fighter jets is somehow now a threat".

But Trudeau, who on Thursday called the tariffs "totally unacceptable", signaled that he was open to the kind of conciliation that Kudlow suggested. He made the comment while outlining Canada's response to US tariffs on steel and aluminum imports.

Canada, the largest supplier of steel to the United States, will impose tariffs covering C$16.6 billion ($12.8 billion) on U.S. imports, including whiskey, orange juice, steel, aluminum and other products. Months ago, Trump proposed these tariffs, but repeatedly offered exemptions to allies while US officials negotiated with their counterparts to come up with a resolution.

"As a key NORAD and North Atlantic Treaty Organisation ally of the United States, and as the number-one customer of American steel, Canada views the USA trade restrictions imposed on Canadian steel and aluminum as absolutely unacceptable", Freeland said.

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Mr Trump has said the tariffs are needed to protect USA steel and aluminium industries vital to the nation's security. "The ball is in the camp of the United States", he added, "it is up to the American administration to take the right decisions to smooth the situation and to alleviate the difficulties". "And I would just say to all of Canada's American friends - and there are so many - seriously?"

The US tariffs are "absurd", as Canadian metal sales are no security risk to the US and the measures would destroy jobs on both sides of the border, Morneau has said previously.

Canada's expressions of disappointment comes as China warned that any trade dispute deals reached at talks in Beijing "will not take effect" if Trump's threatened tariff hike on Chinese goods goes ahead.

Allies including Canada and the European Union are threatening retaliatory tariffs. "They're saying something that we believe is patently untrue". "They report a really high surplus on trade with us", he wrote.

"I had to highlight there was no possibility of any Canadian prime minister signing a NAFTA deal that included a five-year sunset clause and obviously the visit didn't happen", Trudeau said.

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German Finance Minister Olaf Scholz said G7 countries also told Mnuchin about their opposition to new USA sanctions on Iran, which will affect European companies.

"French Finance Minister Bruno Le Maire also said Mnuchin was clearly isolated at on the tariff issue, with the group devolved to a "G6 plus one" with the six expressing "total incomprehension" over the destabilizing U.S. move".

He said he used a private, bilateral meeting Thursday in Whistler to personally deliver that message to Mr Mnuchin. He exempted Canada, Mexico and the European Union pending additional talks to ease US concerns.

"One of the truths about tariffs is they drive up costs for consumers", Trudeau said.

"We're going to be polite but we're not going to be pushed around", he said. The European Union and China said they will deepen ties on trade and investment as a result.

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Trump warns countries of reciprocal tariff