Trump falsely accuses Canada of burning down White House

WATCH Opposition Leader asks Prime Minister why there’s delay in Canadian tariffs taking effect

Finance ministers from the six other nations participating in the summit issued a rare public rebuke during a preliminary meeting last week, saying they would retaliate against Trump's decision to impose duties on steel and aluminum imports from the European Union, Canada, and Mexico. Larry Kudlow, economic advisor to Trump, said Tuesday the administration wants to replace the agreement entirely, with separate trade deals with both the northern and southern neighbors.

The new tariffs imposed by Mexico on steel imports are significant for the US, the biggest supplier to the country, providing over a third of all steel goods imported into Mexico, a net importer of steel products.

"There are disagreements. He's sticking to his guns".

"Communication lines are open", he said.

Angela Hofmann, deputy director of Farmers for Free Trade, said the tariffs will exact immediate and painful consequences on US farmers and the domestic economy.

"This is further weakening trans-Atlantic relations and increases the risk of severe turbulence in the markets globally", said European Commissioner for Trade, Cecilia Malmstrom.

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Rising trade tensions between Canada and the U.S. threaten to drive the key allies apart.

Further complicating the US relationship with Canada is the ongoing effort to renegotiate the North American Free Trade Agreement, with both leaders saying they are willing to walk away from the pact if talks fail to produce a revised agreement to their liking.

Sources claimed that the president invoked the War of 1812 when his Canadian counterpart asked him how he could justify the tariff change as a "national security" issue, which the administration had done under a 1962 trade law.

Ottawa is also frustrated with the slow-moving talks to update the North American Free Trade Agreement, the 1994 agreement between Canada, the United States and Mexico.

On other occasions, he has accused the country of being "very rough" as it has "taken advantage" of the United States and "outsmarted our politicians for many years".

The Mexican tariffs target US pork, produce, bourbon, and steel - products chosen with a political objective in mind.

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The US tariffs have been condemned by nations across the world, with Canada last week announcing it will impose tariffs on as much as $C16.6 billion of US steel, aluminium and other products from July 1. As of May 31, they've all expired, and the US government decided not to renew them.

"The United States must, at long last, be treated fairly on trade", the President tweeted on Saturday. "Right now they are getting chaos and protectionism".

"Hog, apple, potato and dairy farmers are among those suddenly facing a 10 or 20 percent tax hike on the exports they depend of for their livelihoods", she said in a statement.

"We understand what the president is trying to do in terms of the broader discussions", he told Maria Bartiromo on "Mornings with Maria" on Wednesday.

"We believe that the meat [price] will go up 15, 16% and I think that it could have an impact on consumption, reduce consumption, and that's what worries me the most", said Víctor Manuel Ochoa, CEO of Mexico's largest pork producer, Granjas Carroll. The United States has the lowest average tariff in the world.

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