USA singled out by G7 allies over steel and aluminium tariffs

Bill Morneau

"What you are saying to us, and to all of your North Atlantic Treaty Organisation allies, is that we somehow represent a national security threat to the United States", Freeland said.

Canadian officials have said that their proposed tariffs are meant to affect about $12.8 billion in goods coming from the USA, roughly equal to the amount of Canadian goods hit by the Trump tariffs.

Mr Trump tweeted that Canada had treated United States farmers "very poorly for a very long period of time".

The Financial Post led with the fact that the other six members - Canada, France, Germany, Italy, Japan and the United Kingdom - had issued a statement critical of recent US actions.

He also revealed in the NBC interview that Mr. Trump personally agreed with him previous year that it would be wrong to impose such a measure on Canada.

Officials at the G7 meeting said the tariffs made it more hard for the group to work together to confront China's trade practises, especially when Beijing, like most G7 members, supports the current World Trade Organisation-based trade rules and the United States is seeking to go around them.

On Sunday, during an interview with Fox News, White House economic adviser Larry Kudlow responded to Trudeau's comments saying that he didn't think these tariffs would impact the US "friendship and longstanding alliance with Canada".

"I don't think our tariffs are anything to do with our friendship and our longstanding alliance with Canada", Kudlow said.

Canada announced retaliatory tariffs on aluminum, steel and a number of consumer goods after Trump implemented the steel and aluminum tariffs.

He made the comment while outlining Canada's response to USA tariffs on steel and aluminum imports.

Canadian Prime Minister Justin Trudeau on Friday dubbed trade tariffs imposed by the United States as insulting and unacceptable.

Mnuchin, regarded as one of the more moderate trade voices in Trump´s cabinet, said the issue may need to be resolved by G7 leaders at a summit next week in Charlevoix, Quebec, officials attending the meetings said. The measures are particularly controversial for Canada and Mexico, America's NAFTA partners long-committed to free-trade with the US.

On Friday, Trump appeared to double down, saying Canada had treated USA farmers "very poorly for a very long period of time".

The United States, Trump said, was negotiating numerous deals, adding, "We're talking about NAFTA".

Mnuchin rejected comments from some G7 officials that the United States was circumventing worldwide trade rules with the tariffs or ceding global economic leadership.

The U.S. trade deficit in 2017 was closer to $566 billion. "So it's not like the trade is imbalanced against the USA favor on this one", Trudeau said.

At the same time, a Trump aide said Trudeau was "overreacting".

Speaking after the meeting, Le Maire said the European Union was poised to take counter-measures against the new USA tariffs. "I had to highlight that there was no possibility of any Canadian prime minister signing a NAFTA deal that included a five-year sunset clause, and obviously the visit didn't happen", Trudeau said.

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