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Why Oil Markets Should Fear Trump's Trade War
05 June 2018, 12:08 | Vera Richards
Andy Clark Reuters
The US tariffs of 25 percent on imports of steel and 10 percent on aluminum were imposed early on Friday on Canada, Mexico and the European Union after they refused to accept steel and aluminum quotas in negotiations with US Commerce Secretary Wilbur Ross.
"We regret that our common work together at the level of the G7 has been put at risk by the decisions taken by the American administration on trade and on tariffs". However, things could change if a trade war begins with China. "In this case, it is simply a response to a first action", Guajardo told Mexican radio. Trudeau says the Trump team made a new demand insisting that any new NAFTA deal expire after only five years.
The Canadian government said they were targeting 16.6 billion Canadian dollars, or roughly $12.8 billion United States dollars.
"The U.S. has been ripped off by other countries for years on Trade, time to get smart!"
US agricultural exports are worth about $140 billion a year. But he also predicted pressure to save NAFTA will grow within the U.S. Some Republican lawmakers, including North Country Rep. Elise Stefanik, have signaled they don't want a trade war with Canada.
In March, he threatened to impose tariffs on Canadian and Mexican steel and aluminum exports to the US unless those two countries ceded significant ground in the NAFTA talks.
"If ultimately that's monetary, if that's what's required to preserve investment and employment in Canada, to make sure that those 23,000 Canadians in steel continue working, then that's what we'll do".
But that relief died last Thursday after the White House announced the tariffs would now apply to its northern neighbour as trade talks seemed to have stalled.
Trump responded to the Canadian tariffs on up to $16.6 billion worth of US imports, saying the days of the USA being taken advantage of in trade deals "are over".
Trudeau said he would seek out Trump at the meeting of the G-7 leaders this week in Quebec to discuss trade issues.
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