Published: Sun, June 03, 2018
Economy | By

G7 allies prepare for clash over tariffs with Trump at leaders' summit

G7 allies prepare for clash over tariffs with Trump at leaders' summit

Canadian Prime Minister Justin Trudeau blasted the tariffs imposed by the Trump administration on steel and aluminum as "insulting and unacceptable" and said he would retaliate by placing similar penalties on United States goods, increasing the possibility of an all-out trade war between the two allies.

Mexico announced retaliatory tariffs on US products, and Canada said it would act as well.

As the ministers meet ended, Trump was as bellicose as ever, taking to Twitter to denounce "stupid trade" in which he said the U.S. saw foreign tariffs on its exports without responding in kind.

Canadian Prime Minister Justin Trudeau called President Trump's trade tariffs on aluminium and steel "insulting and unacceptable" in a new video posted on Saturday by NBC's Meet the Press on Twitter.

Asserting that he likes free trade, but wants fair trade, US President Donald Trump warned that he could impose reciprocal tariff on other countries. "I don't think anybody wins a trade war".

"We've specifically put forth. countermeasures that demonstrate our view that this is unproductive, and we see that response as being a way to get us back to the table so the impacts actually don't happen", Morneau said Friday.

"I think there was a comment out there that it was the G6 plus one".

Dr Fox's comments follow those of European Union trade commissioner, Cecilia Malmstrom, who also called the new tariffs illegal and said the United States was playing a "dangerous game". But a Business Insider analysis found that the Canadian tariffs could apply to $15 billion or more in USA goods. "It was not... We believe in the G7, it's an important group", Mr Mnuchin said at his own news conference.

"The ball is in the camp of the United States, it is up to the American administration to take the right decisions to smooth the situation and to alleviate the difficulties", he added.

French Finance Minister Bruno Le Maire also said Mnuchin was alone on the tariff issue, with the group becoming a "G6 plus one" as the six expressed "total incomprehension" over the USA move.

As well as tariffs, EU countries told the United States about their concern over the effect of new U.S. sanctions on Iran for European companies that want to trade with both nations.

If the WTO hears the complaint, Georgetown law professor Jennifer Hillman says the chances that the organization would side against the US are extremely strong because, "it's a very clear case of a violation". As the meeting was wrapping up, he tweeted, "When you're nearly 800 Billion Dollars a year down on Trade, you can't lose a Trade War!" We're going to charge five times. "Highly restrictive on trade!" he wrote. "But we see no sign of that in this action today by the USA administration".

The tariffs also are complicating US efforts to gain cooperation to challenge China´s trade practices as US Commerce Secretary Wilbur Ross arrives in Beijing on Saturday for talks aimed at averting a US-China trade war.

"I've taken a different take on that than my father", Trudeau told Todd Sunday.

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