U.S. singled out by G7 allies over steel and aluminum tariffs

Adjust Comment Print

The ministers of the six non-U.S. members of the Group of Seven industrialized nations - the host Canada, along with France, Germany, the U.K., Italy and Japan - on Saturday issued a joint statement excluding the USA, and conveying their "unanimous concern and disappointment" with the US decision last week to impose tariffs on steel and aluminum imported from the European Union, Canada and Mexico.

Trump enraged USA allies Canada, Mexico and the European Union last week by slapping tariffs on their steel and aluminum shipments to the United States; most other countries have been paying the tariffs since March.

Mexico Foreign Minister Luis Vinegary labeled the tariffs "unjust and unilateral" but said Mexico will continue to negotiate with Washington to revamp the North American Free Trade Agreement.

Canadian Prime Minister Justin Trudeau may not follow Trump on Twitter but he knew exactly what the president was talking about, strongly opposing these and other tariffs the president has advanced.

Trudeau added that he does not know what Trump wants Canada to do in order to remove the tariffs, because the USA actually exports more steel to Canada than Canada sends to the US, and when it comes to oversupply from China, Canada is on the same page as Trump. "They must open their markets and take down their trade barriers!" he wrote. "Do Timber & Lumber in USA?"

Countries around the world are already fighting back, announcing retaliatory countermeasures and warning that the US plan will hurt USA consumers.

"Canadians have served alongside Americans in two world wars and in Korea".

He also confirmed that his country will impose duties on the United States. Trump has regularly criticized Canada's system, including last week.

She says Trump's recent steel tariffs actually might make it easier for Trudeau to side with Europe, rather than pushing for a watered-down compromise.

The United States was singled out by some of its closest allies Saturday over the imposition of tariffs that they warn will undermine open trade and weaken confidence in the global economy.

Trump asserted that the United States had to be treated fairly on trade.

Morneau has said Ottawa is buying the project from Kinder Morgan Canada in order to help the expansion overcome political risks. The EU has stated that they are preparing similar tariff responses.

There could be opportunities for a bump in sales for Canadian substitutes for these USA products, said Mike Von Massow, associate professor in the food, agricultural and resource economics department at the University of Guelph. He exempted Canada, Mexico and the European Union pending additional talks to ease US concerns. Cecilia Malmstrom, the European Union trade minister, said the tariffs amounted to "pure protectionism" and are "further weakening the transatlantic relations".

Speaking with reporters at the White House, Trump said America's neighbors are "two very different countries" that perhaps should no longer be governed by the same trade rules.

Trudeau and the European Union condemned the steel and aluminum tariffs, and tempers will no doubt be high on June 8 when leaders hold a traditional discussion about trade.

International Monetary Fund Managing Director Christine Lagarde said if trade is "massively disrupted", the level of public trust in leaders will be severely damaged.