Trump complains about traveling to Canada ahead of Singapore summit with Kim

Fredrick Soto
June 7, 2018

During the conversation, Trudeau questioned Trump about how he could justify the tariffs as a matter of "national security". That led to threats of retaliation.

It's not only G7 allies that have been alarmed by Trump's money-centric view of USA alliances.

Ministers from Germany, France and Britain have already written to US officials urging them to shield European companies working in Iran from getting caught up in Washington's new sanctions on Tehran.

On Friday, Trump floated the idea of negotiating separate bilateral trade pacts with Canada and Mexico.

Trudeau has denounced the "national security" justification for the new tariffs.

The Mexican peso dropped to its weakest level since February 2017 following the government's announcement, to trade at more than 20 to the U.S. dollar.

Now that they've gotten everyone's attention, it would be good if the Trump administration's next move is constructive. But in an odd twist, American consumers could eventually pay less, especially for pork products.

"Let us modernise what needs to be modernised", he added in reference to the WTO. They fall on only about $3 billion in US exports, but were crafted to have a "very specific" focus on vulnerable Republicans, said one senior Mexican official who asked not to be named.

"If the numbers are accurate, an additional $70 billion in USA exports to China would be considerable - a 50 percent increase in US exports from 2017 levels", Chad Bown, a senior fellow at the Peterson Institute for International Economics, said in an email. Mexico sells about 80% of its exports to the US.

O'Neil said that even the non-agricultural goods that make up the EU, Canadian, and Mexican tariffs lists are created to send a message.

Trudeau was angered Trump utilized the rarely invoked "national security" provision to justify the tariffs, and in doing so was alluding that Canada was a threat to USA national security. By comparison, China buys just $116 billion.

Kudlow insisted Wednesday the NAFTA talks are still ongoing, but he wouldn't say whether a deal could be reached this year.

Trudeau was apparently arguing Canada's loyalty directly to the US president when Trump fired back about the Burning of Washington.

Amid heightened concern over the prospect of a global trade war, Mexican officials announced retaliatory duties on USA steel products.

So far, only Canada and Mexico have done so.

These are expected to target US-produced metals and other products such as jeans and whiskey. At last year's G-7 summit in Sicily, Macron said he could talk the USA out of withdrawing from the climate accord.

While tariffs on these products won't have much of an impact on the overall USA economy, they could be especially painful for particular industries or regions. President Trump believes it "rips off" America and reduces USA power. Ben Rhodes, a former foreign policy adviser to Barack Obama, warned on Twitter of "severe and lasting damage to America's standing", saying the U.S.is acting "for no reason other than Trump's ego and impulses". They will be hit with taxes ranging between 15 and 25 percent.

Expectations for a resolution of the trade row this week are low after finance leaders from the United States' G7 partners butted heads with U.S. Treasury Secretary Steven Mnuchin at a meeting last week in the Canadian resort town of Whistler, British Columbia. The automotive industry is particularly vulnerable in this regard.

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