Trudeau Taking Heat from Canadian Dairy Farmers

Canada's Justin Trudeau says NAFTA talks broke down after Pence made ultimatum

Canada's Justin Trudeau says NAFTA talks broke down after Pence made ultimatum

The White House has said the tariffs imposed last week - 25% on steel and 10% on aluminum - were created to address the role steel imports have played in undermining the viability of the USA steel industry, without which the country would have difficulty mobilizing for its defense.

US President Donald Trump has said he would agree to a fair deal on the North American Free Trade Agreement (NAFTA), which is now being renegotiated with Canada and Mexico, or there would be no deal at all.

US President Donald Trump suggested Friday the United States might pursue separate free trade agreements with Canada and Mexico to replace the 24-year-old three-nation NAFTA pact.

Canada retaliated against the latest punitive measures last week by proposing levies on $16.6 billion worth of US exports to come into effect on July 1.

Mexico has vowed to retaliate with tariffs on American lamps, pork, flat steel, and more. Lampron criticized previous trade deals that opened the Canadian market.

Trump said on Friday he might prefer to end NAFTA in favor of separate bilateral agreements with the two USA neighbors.

The American move - which prompted retaliatory measures from Canada and others - threatens to drive a powerful wedge into the G7, and could fracture the long-standing multilateral relationship into something observers describe as a "G6 plus one", with the U.S.as the outlier. Then Vice President Mike Pence called and said Trudeau could only see Trump if he agreed to a USA demand for a Nafta sunset clause. "And on top of that, these tariffs are going to be hurting American workers and Canadian workers".

Six worldwide agencies, including the United Nations Children's Fund (UNICEF) and World Vision, are calling on the G7 to make that three-year spending commitment. "And we also imposed duties on consumer goods, finished products that Canadians can easily find an alternative", he said. The Bank of Canada will publish its latest financial system review Thursday, which is sure to be closely watched by economists after last week's mixed economic messages.

Trump’s growing trade war could hit Bay State hard
German Chancellor Angela Merkel said the European Union would respond in a "firm and united" manner to the tariffs . Now that the U.S.'s three key allies are subject to the tariffs , they are looking at what to do next.

President Donald Trump's chief economic adviser is brushing off concerns over escalating trade disputes with a host of US allies as nothing but a "family quarrel".

During question period, Conservative Leader Andrew Scheer also urged Trudeau to accelerate the response, but the prime minister says he wants to follow through on the consultations while trying to persuade the U.S.to drop the tariffs.

"Concerns were expressed that the tariffs imposed by the United States on its friends and allies, on the grounds of national security, undermine open trade and confidence in the global economy", the summary of the meeting noted. "The U.S. has been ripped off by other countries for years on Trade, time to get smart". "We will continue to defend supply management", she said, declining to elaborate. Tariffs discourage imports by making them more expensive.

Meanwhile, the European Union on Friday lodged an official complaint with the WTO over Trump's "unfair" trade tariffs. Special restrictions related to the trade.

But he exempted Canada, Mexico and the European Union to buy time for negotiations, a reprieve that expired at midnight on Thursday.

Heather Conley, a former U.S. State Department official now with the Center for Strategic and International Studies in Washington, said the divisions on trade meant it would be hard for leaders to focus on the other issues.

That condition "makes no sense", the Canadian leader said Sunday.

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