Published: Thu, June 07, 2018
Finance | By Kristine Clayton

European Union sets July timeframe for United States tariff reprisals

European Union sets July timeframe for United States tariff reprisals

Minister of Foreign Affairs Chrystia Freeland made the same argument in a CNN appearance, saying "do you really think Canada ... represents a national security threat to you?"

During the conversation, Trudeau questioned Trump about how he could justify the tariffs as a matter of "national security".

Rebuffing the criticism down the line, Mr Trump reportedly shot back: "Didn't you guys burn down the White House?"

Now, to be fair to Trump, the British attack on the White House was in retaliation for our attack on York, Ontario (a British colony at the time), but that's pretty much the only way that Canada is connected to this infamous act.

The E.U. said its retaliatory tariffs on $3.3 billion worth of USA goods would be ready in July, while Canada has approved its own list of counter-tariffs. On Monday, the country also said it would start proceedings in the World Trade Organization against the USA tariffs, a move already being followed by Canada, China, India and a number of other countries.

When the steel tariffs were first proposed in March, the EU, Canada and Mexico all reacted by threatening to retaliate with their own sanctions against some of these products. That falls short of the US$200 billion over two years that the Trump administration has demanded the Chinese government buy to address a yawning trade imbalance.

Trudeau and Trump may lock horns again in La Malbaie, Que., where the prime minister will host the G7 summit June 8 and 9.

"I'm always the optimist, I believe it can be worked out", Kudlow said.

Mexico is the second biggest market for United States' pork exports and one-third of all pork consumed domestically comes from north of the border.

Kudlow added that the United States and China had not yet reached a deal to resolve Trump's demand for a smaller USA trade deficit with China.

The Trump administration placed a 25 percent tariff on steel and 10 percent tariff on aluminum with the aim of propping up us metals manufacturers. The United States trade representative office told the Washington Post that the USA actually has a trade surplus with Canada.

Despite the G7's efforts to coax the Trump administration away from a go-it-alone approach, some analysts now question whether Washington remains committed to basic policies that have upheld the post-World War Two worldwide economic system.

The reaction of the EU, Canada and Mexico raises the possibility the facing down a full-blown trade war - even as it does the same with China.

USA stocks, apart from those of steel and aluminum producers, have fallen sharply in response to Trump's recent tariff announcements and other actions against trading partners.

"Two hundred years ago, the United States invaded our territory", a narrator ominously said in one government ad.

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