President Donald Trump's top economic adviser said Sunday that Canadian Prime Minister Justin Trudeau is "overreacting" to new USA tariffs on steel and aluminum imports from Canada.
The White House announced last week that Canada, Mexico and the European Union nations would face a stiff 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum.
The US administration announced yesterday that it would be implementing tariffs of steel and aluminum from Europe, Canada, and Mexico.
Prime Minister Justin Trudeau announced that Canada will impose retaliatory tariffs on $12.8 billion worth of USA goods in response to Trump's metals tariffs.
Trudeau said Sunday in a US television interview the USA was seeking two main things in Nafta negotiations, which are essentially on the back-burner after the US hit Canada and Mexico with steel and aluminum tariffs last week. "The United States must, at long last, be treated fairly on Trade", Trump tweeted.
Trudeau was also asked about possible concessions the U.S.is seeking in the NAFTA talks.
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The United States had sought to use the tariff threat as a cudgel to win concessions from Canada and Mexico in talks to renegotiate NAFTA, offering the two US neighbors a permanent exemption if they agreed to USA demands. "But we see no sign of that in this action today".
"Canadians have served alongside Americans in two world wars and in Korea".
Trump has made no secret of his overriding concern about US trade imbalances, viewing them as a sign of American weakness around the globe.
Canadian Finance Minister Bill Morneau said that Washington's decision to impose the tariffs - Canada provides half of all U.S. aluminum imports - had lessened the chances for a successful outcome of the NAFTA talks.
The G7 leaders have also exchanged tough words over the issue, with Trudeau saying Sunday that calling Canada a national security threat to the United States is "quite frankly insulting". China has threatened to hit back with tit-for-tat tariffs on tens of billions of dollars in United States goods - as have Canadian, EU and Mexican authorities. It marks the first time U.S. President Trump will set foot on Canadian since assuming the role and comes amid an escalation of trade tensions between the two countries (as well as the U.S. and many other countries present). "We will continue to defend supply management", she said, declining to elaborate. China said it would retaliate USA tariff threat materialize. Before the establishment of the federal income tax in 1913, tariffs were a big money raiser for the US government. However they also target exports from states of significant American political leaders, such as gherkins and yogurt from House Speaker Paul Ryan's home state of Wisconsin, and bourbon from Senate Leader Mitch McConnell's state of Kentucky.
"Here, the European Union is claiming that the Americans have implemented trade restrictions - in this case, the steel and aluminum tariffs - that violate the rules of the worldwide system", Chad Bown, senior fellow at the Peterson Institute for global Economics told All Things Considered. The official said a range of issues remain to be resolved but the USA looks forward to continuing the negotiations with Canada. He fired back with tariffs on USA exports of everything from whisky to motorboats to orange juice. The European Union, and Canada challenged these measures in the world trade organization (WTO).