It’s Trump Against the Developed World as G-7 Frays Over Tariffs

07 June, 2018, 13:58 | Author: Shannon Aguilar
  • Dairy cows. THE CANADIAN PRESS  Jonathan Hayward

Trump has accused Canada of ripping off the United States through unfair trade practices, and Canadian officials have said Trump is using inaccurate information to attack a US ally. "This is a unsafe course and should be abandoned immediately", Corker said in the statement.

The pair were scheduled to hold formal talks and a private dinner on Wednesday, followed by a joint news conference early Thursday.

The move could create more cross-border economic uncertainty between Washington, Ottawa and Mexico City after Trump imposed metal tariffs on imports from its neighbors.

In retaliation, all of them have either hit back with their own tariffs on U.S. goods or threatened to do so, as well as challenging the U.S. trade measure at the World Trade Organization.

The remarks underscore the differences between Trump and his fellow G7 leaders over the usefulness of the global multilateral world order, something Trudeau and the other world leaders are struggling to defend.

"There will be frank and sometimes hard discussions around the G7 table, particularly with the United States president on tariffs", Trudeau told reporters.

"And that's what the G7 is very much for".

After Washington slapped 25 percent tariffs on steel and aluminum from Mexico and Canada, Mexico has retaliated with tariffs on a diverse range of American exports. Just days before Trudeau is set to host a G7 Summit in Quebec, Canadian officials tell CNN they are just trying to "keep Trump happy".

"The world economic order is. under attack", Canada's Trade Minister Francois Philippe Champagne commented. Democrat Abby Finkenauer, seen standing a good chance of winning the 1st congressional district from Republican control, said Trump was starting a trade war that would hurt the state.

It's well documented that British troops torched the White House over 200 years ago. But the G-7 remains a symbol of the traditional USA -led order.

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Trump bragged at a fundraising speech later that month that he made up facts in a meeting with Trudeau, claiming the USA runs a trade deficit with its biggest ally.

Trump defended his decision on tariffs on Canada and other United States allies in a tweet over the weekend.

Speaking to reporters following the weekly Conservative caucus meeting, Scheer didn't outright reject the notion of a one-on-one trade deal with the United States, but said for the time being, saving NAFTA is still plausible and should be Canada's focus.

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.

U.S. President Donald Trump and Russian President Vladimir Putin at the Asia-Pacific Economic Cooperation summit in Vietnam in November 2017.

Jacob Funk Kirkegaard, a senior fellow at the Peterson Institute for International Economics, said, "This is essentially a recipe for a G-6 plus one".

The other 6 members of the G7 are holding out hope they can find common ground with Trump, but are prepared to stand up to USA protectionism.

Kudlow said Trump doesn't plan on withdrawing from NAFTA, but he wants to try a different approach.


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