Media playback is unsupported on your device Media captionTrudeau Canada not US national security threat
04 June, 2018, 07:28
The Canadian prime minister, Justin Trudeau, issued an immediate tit-for-tat response, announcing tariffs of up to 25% on USA imports equivalent to C$16.6bn, the total value of Canadian steel exports previous year.
The tariffs also don't bode well for ongoing North American Free Trade Agreement (NAFTA) negotiations. In addition, Canada imported more than half of its steel from the USA a year ago - a figure that's likely to shrink if 25% import taxes persist.
U.S. PresidentDonald Trump took to Twitter a day after imposing tariffs on steel and aluminum to call out Canada's softwood lumber industry, a sector that could provide insight for others on resilience in the face of U.S. tariffs.
'Canada has treated our Agricultural business and Farmers very poorly for a very long period of time.
The EU said the imposition of the tariffs is "inconsistent with the US' obligations and rights set out in the WTO Agreement".
An even higher-stakes trade dispute is playing out on the Pacific Rim. "Do Timber & Lumber in USA?" he wrote.
In an exclusive interview with NBC " s "Meet The Press", Trudeau said that he failed to understand what Trump wanted to accomplish, The Hill reported. But those negotiations have so far failed to result in a deal.
The Canadian government is still finalizing how to come up with "the best possible retaliation list" and that could mean the number of American goods getting slapped with an extra tax could grow, according to Foreign Affairs Minister Chrystia Freeland.
Macroeconomic Advisers, a research firm focused on the US economy, reported Wednesday that the United States trade deficit in goods was "much narrower than expected", implying "substantially more" U.S. exports in the second quarter.
"Now we're into an era where the United States has no friends and enemies, only interests and that creates such uncertainty and volatility across so many markets", he said. Those days are over.
A White House official, however, disputed Trudeau's remarks, stating that the Canadian prime minister exaggerated just how close to the trade deal the three countries were.
Trudeau's blast at Pence put the VP in the hot seat, after North Korea also named-checked the second-in-command, who often plays the role of enforcer, as having a role in rising tensions.
Soaring demand for lumber from the booming USA housing construction sector, where housing starts were higher than they have been in a decade a year ago, has helped pushed prices to record highs.
Canada submitted its latest proposal for a NAFTA rework on May 25.
He added: "We believe in a rules-based system, a multilateral system, President Trump doesn't and we must understand that".
Le Maire had earlier Friday referred to the talks as a "G6 plus one", with the United States standing apart, adopting a joke circulating among attendees at the weekend.
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