Published: Thu, June 07, 2018
Global Media | By Derrick Guzman

USA tariffs add 'frictions' as G7 ministers meet in Canada

USA tariffs add 'frictions' as G7 ministers meet in Canada

The Trump administration wants the tariffs to boost the USA steel and aluminum industries, but critics say they could make American products more expensive.

On Friday, the President of the United States Donald trump negatively assessed the state of commercial relations with Canada in the field of agriculture and farming after Trudeau expressed regret in connection with Washington to enter protective duties on imported steel and aluminum.

Trudeau added that he does not know what Trump wants Canada to do in order to remove the tariffs, because the USA actually exports more steel to Canada than Canada sends to the US, and when it comes to oversupply from China, Canada is on the same page as Trump. Major trading partners rebuked Trump's multi-front trade offensive while their governments announced countermeasures and legal challenges. Trump tweeted. "They must open their markets and take down their trade barriers!"

But the president defended his actions saying the US would soon be in a stronger position with its top trading partners. Both threatened retaliatory tariffs on USA products. "It's going to hurt as well, and neither of those things is something that Canada wants to see", Trudeau said. Part of the 10 per cent levy at the wholesale level may eventually be passed on to Canadian consumers in the retail price, if the tariff war persists.

Both Abreu and Bergamaschi say worldwide climate change organizations also want the G7 to set the stage for countries around the world to agree to raise emissions targets they say remain far too low.

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

The EU also plans to slap heavy tariffs on other products such as bourbon, United States denim, motorcycles, motor boats etc.

On top of being potentially cheaper than US goods subject to the tariffs, some Canadian consumers or businesses may shop more patriotically in protest, she said.

Canada, France, Germany, Italy and the United Kingdom asked U.S. Treasury Secretary Steven Mnuchin to bring President Donald Trump "a message of regret and disappointment", Canada's Bill Morneau said at the end of a press conference. "We will continue to defend supply management", she said, declining to elaborate.

"Your comments, in addition to political meetings between your staff and President Trump's advisers, for which there has been little information provided to us, are quite worrisome". Ryan has said Nafta's biggest problem "comes from the north".

Earlier in March, Trump had announced the said tariffs to be applicable worldwide while exempting Canada, Mexico and the EU. Tariffs discourage imports by making them more expensive.

Counting trade in both goods and services, the USA trade deficit was $566 billion in 2017, a 12 percent increase marking its highest level since the 2008 Great Recession.

Mnuchin said he had informed Trump of his discussions but that trade was only one of many issues on a full agenda.

Hillman, a former member of the World Trade Organization's Appellate Body, told Weekend Edition that responding to the likely defense from the US will be tricky for the WTO.

More broadly, economists say trade restrictions make the economy less efficient.

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