US singled out by G7 allies over tariffs ahead of summit

THE CANADIAN PRESS  Jeff Mc Intosh                       Minister of Finance Bill Morneau speaks to the media in Calgary Alta

The Canada-U.S. trade war bled into farm fields on Monday as Prime Minister Justin Trudeau's government faced dual attacks from Canadian dairy farmers, and President Donald Trump.

One Canadian insider said traditionally, Canada was too small for retaliatory trade action against the U.S.to have an impact, but Trump has gone after so many countries at once that the pushback globally is big enough to have an impact on the American economy.

Prime Minister Justin Trudeau announced that Canada will impose retaliatory tariffs on $12.8 billion worth of U.S. goods in response to Trump's metals tariffs.

Trudeau also faced pressure Monday to speed up Canada's tariff retaliation on US steel and aluminum imports, while it consults on imposing levies on other American consumer goods. It also used the national-security argument to impose tariffs on steel imports from Canada, its neighbor to the north. Lampron criticized previous trade deals that opened the Canadian market. The list which covers 10- pages of USA products includes bourbon and Harley Davidson motorcycles. He made the comment while outlining Canada's response to US tariffs on steel and aluminum imports.

Arguing that the action would "do nothing to address the problem of global overcapacity", François-Philippe Champagne said that US President Donald Trump's Section 232 tariffs would harm American and Canadian producers whose integrated aluminium industries "don't sell to each other, they make things together".

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"Canadians have served alongside Americans in two world wars and in Korea".

"Our absolute view is that this is absurd to think that Canada could in any way be a security risk to the United States", Canadian Finance Minister Bill Morneau told reporters at the conference.

Canadian Finance Minister Bill Morneau said that Washington's decision to impose the tariffs - Canada provides half of all United States aluminum imports - had lessened the chances for a successful outcome of the NAFTA talks.

While there may be Canadian-made alternatives, these tariffs will "inflict pain" on domestic firms as some inputs or unique products can not easily be switched or replaced, said Dan Kelly, the chief executive of the Canadian Federation of Independent Business. He blames what he calls their abusive trade policies for America's persistent trade deficits - $566 billion past year.

Trade ties between Canada and the United States have soured since Trump took office in January 2017. "On trade, the USA has quite dramatically become a source of discord and division". "We will continue to defend supply management", she said, declining to elaborate. They report a really high surplus on trade with us. Tariffs discourage imports by making them more expensive.

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

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

President Trump does not underestimate his fans on Twitter, blasting out comments that assume a deep knowledge of policy on the part of his 52.4 million followers.

International Monetary Fund Managing Director Christine Lagarde said if trade is "massively disrupted", the level of public trust in leaders will be severely damaged.

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