Finance

Trump to stick with hard line on trade as G7 showdown looms

Trump to stick with hard line on trade as G7 showdown looms

On Sunday, Canadian Prime Minister Justin Trudeau called the tariffs "insulting" in an interview with NBC News.

Finance ministers from the six other nations participating in the summit issued a rare public rebuke during a preliminary meeting last week, saying they would retaliate against Trump's decision to impose duties on steel and aluminum imports from the European Union, Canada, and Mexico.

The current-day White House, from which Trump was likely taking Trudeau's call, had to be mostly rebuilt as a result of the fire.

The EU and Canada have also promised retaliatory tariffs.

Mexico has announced new tariffs on U.S. products in response to Donald Trump's decision to impose steep duties on imports of steel and aluminium.

Trump has recently said he'd be interested in negotiating separate bilateral trade deals with Mexico and Canada instead of updating Nafta. Canada dominates, supplying more than a quarter of all USA steel, aluminum and iron imports in 2016.

"And I would just say to all of Canada's American friends - and there are so many - seriously?"

The Canadian prime minister will host the leaders of Britain, France, Germany, Italy, Japan and the United States for an annual G7 summit in La Malbaie, Quebec on Friday and Saturday.

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

"His preference now, and he asked me to convey this, is to actually negotiate with Mexico and Canada separately". It was, but mostly because the USA kept invading its territory, hoping to make Canada the prize of victory. The White House did not respond to a request for comment and a Canadian official declined to comment on the record.

Mnuchin and Kudlow are often referred to as the "globalists" in the administration and they have clashed with US Trade Representative Robert Lighthizer and White House trade adviser Peter Navarro, who are more hawkish on China. Some further tariffs will come into force on July 5.

"If the numbers are accurate, an additional $70 billion in USA exports to China would be considerable - a 50 percent increase in US exports from 2017 levels", Chad Bown, a senior fellow at the Peterson Institute for International Economics, said in an email.

Mnuchin's support of legislation restricting Chinese investments that imperil the United States' national security is among his highest priorities, a Treasury spokesman said on Tuesday.

The tariffs will make those USA products more expensive for Mexican consumers.

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.