Trump calls Trudeau 'indignant' ahead of Canada visit

08 June, 2018, 08:33 | Author: Chad Mckenzie
  • Washington apple farmers brace for impact after Mexico imposes tariffs on U.S. imports

Canada and Mexico, both the neighbors are strongly opposing Trump's threat of canceling the existing trilateral deal and renegotiating new terms for individual country.

Those new tariffs are in response to the Trump administration's decision to apply import taxes to steel and aluminum.

The EU plans to have the first stage of its new tariffs go into effect in July.

Yet another reason to slap tariffs only on imports from selected countries is to limit the pain to US businesses and consumers that purchase those products.

"The U.S.is playing a unsafe game here", Malmstrom said.

Earlier this year, Mexico and the European Union reached a provisional agreement on an expanded trade deal adding farm products including pork to the tariff-free list.

Trump's recently announced tariffs are only the latest move signaling USA departure with traditionally close allies.

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Iowa, where one incumbent Republican representative, Rod Blum, is seen as vulnerable, is an example of a place where Trump's party could be hurt.

At the same time as imposing the tariff on USA pork, Mexico opened a 350,000-tonne quota for imports of the meat from other countries.

"It'll be very similar to other G7 tables in which we highlight and discuss many things that were agreed on and have differences of opinion on other things", Trudeau said.

"If our customers around the world start going to other parts of the world for their supplies, that is a serious problem", he said. And tariffs are simply one more tool in the president's toolbox when it comes to repairing it.

"It certainly casts a negative pall over the market", said CME livestock futures trader Dan Norcini.

They also said they expected Trump to come under increasing pressure at home to reverse the tariffs, which they said would hurt USA interests. The president has said that he would not abandon farmers. Washington has threatened tariffs on imports of Chinese goods unless Beijing stops stealing American companies' intellectual property.

In addition to the agricultural products and bourbon, Mexico imposed tariffs on a variety of USA steel products exports. "You can't, among allies in this worldwide context, start a trade war".

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Canada has also announced plans to retaliate with tariffs of up to 25% on almost $13 billion of U.S. products, set to take effect on July 1.

The United States and Mexico do $600 billion in annual trade and about 16 percent of USA goods exports go to its southern neighbor. It continues: "The implication was that the USA would climb down from its threat to impose steel and aluminum tariffs so long as European Union countries keep their promises, made at the 2014 NATO Summit in Wales, to increase their defense spending to 2 percent of GDP".

The group says that there are 110,000 United States jobs directly tied to USA pork exports to Mexico as well as to other countries.

In April, Canada tried to address what Trump said were concerns about Chinese steel and aluminum being dumped into Canada and then being shipped into the United States.

Canada, Mexico, and the United States have been holding talks to revise the two-decade-old NAFTA since last August. The U.S. landed 2.9% in Q1 and has phenomenal growth ahead.

"I have no doubt that the United States and Canada will remain firm friends and allies whatever short-term disagreements may occur", Kudlow said. "I'm not sure anyone gets on well with her".

Mexico sells about 80 per cent of its exports to the US.

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