Canada to impose tariff 'countermeasures' on US

Jun 05, 2018, 00:10
Canada to impose tariff 'countermeasures' on US

May's office said she stressed that "the USA, United Kingdom and European Union are close national security allies and we recognize the importance of the values of open and fair trade across the world". It's extremely hard to imagine the US being able to force such a long list of countries into giving in, especially since Trump is fighting a trade war on so many fronts at once. A White House official said a range of issues had yet to be resolved.

Top economic adviser Larry Kudlow said Canadian Prime Minister Justin Trudeau was "overreacting" in response to the tariffs, and said the blame for any escalation lies with the U.S.'s trading partners.

Trump on Friday said he is weighing whether to scrap the pact altogether.

Kudlow goes on to say he doesn't think the talks have broken down and that he doesn't want to be cavalier, saying "these are very serious matters".

Canada vowed on Monday to do all it could to protect its steel and aluminum sectors from USA tariffs but sidestepped an industry call to strike back quickly, saying it needed time to study the issue.

She calls the USA measures illegal and counterproductive. And he has threatened tariffs on up to $200 billion in Chinese imports, raising the potential for retaliation.

Leaders of the group's member countries meet next week in Quebec and ministers urged the U.S. to abandon the tariffs ahead of the leaders' summit to prevent deeper divisions.

"I do agree that this is a risk to the economy, tariffs are taxes, they will hurt American consumers, the US Chamber of Commerce says this could cost American jobs", Moore said in an interview with CNN, adding that the trade tensions are "problematic".

And former Iowa Governor Terry Branstad was appointed US ambassador to China in part because of his agricultural ties.

He told MPs: "It is right to seek to defend our domestic industries from both the direct and indirect impacts of these U.S.'s important that the United Kingdom and the European Union work within the boundaries of the rules-based global trading system".

Canadian officials have said that their proposed tariffs are meant to affect about $12.8 billion in goods coming from the USA, roughly equal to the amount of Canadian goods hit by the Trump tariffs.

In response to the US move, Canada and the European Union have threatened to retaliate with tariffs of their own, prompting France's finance minister to say the "tense and tough" Whistler meetings were much more of a "G6 plus one" than a G7.

Over a span of just a few days, the Liberals announced a plan to potentially spend $4.5 billion to buy a controversial pipeline, watched the chances of a quick NAFTA renegotiation sputter and joined other G7 allies in moving closer to a punishing tariff war with the United States. "But everything is ready".

Business leaders in Canada and the US predicted dire economic consequences as result of the decision, which was derided on both sides of the Atlantic.

Trump and other G7 leaders meet next weekend in Quebec.

A confrontation next week would spoil the collegial mood within the G-7, which was created in the 1970s to discuss economic matters such as the fallout from the first oil shock.

French finance and economy minister Bruno Le Maire said sessions had been "tense and tough" and that "I would say it's been far more a G6 plus one than a G7".

But after totaling the value of Canada's list of United States goods subject to tariffs using import data, Business Insider found that the value of these exports is equal to roughly just over $15 billion USA dollars, or 19 billion Canadian dollars. Their largest market is Mexico, which announced plans to target US apples.

Business Insider found in an analysis that the total value of the goods Canada listed as subject to tariffs is more than that stated goal.

"I don't think in any way the USA is abandoning its leadership in the global economy, quite the contrary".

He claimed the meeting was not at all a G6-plus-1 meeting like many have said it was.

"What we've shown this week is that when faced with challenges that were going to not be in Canadians' best interests, that we'll take action", said Morneau, the point person for Trudeau on many of these major files.