Published: Mon, June 11, 2018
Global News | By Blake Casey

Trudeau-Trump trade meltdown threatens $80-billion in Canadian auto exports


Sunday a Democratic Representative from IL surprisingly sided with President Donald Trump in the White House's ongoing war of words over tariffs with Canadian Prime Minister Justin Trudeau.

He justified President Trump's decision to drop out of a joint statement made by G7 countries this weekend.

Yet the US President and his aides have lashed the leader of America's neighbour, longtime ally, Five Eyes member and G7 Summit host with language usually reserved for rogue nations just before the bombs begin to fall.

But the president also felt he couldn't be pushed around by the Canadian leader on the cusp of a major summit with North Korean dictator Kim Jong-un.

"In the name of the Western allies, he ought to come out today and wish President Trump well in the negotiations, instead of taking potshots at us", Kudlow said. The non-factual part of this is - they have enormous tariffs.

Mr Trump also said he might double down on import tariffs by hitting the sensitive auto industry, throwing the G7's efforts to show a united front into disarray.

The statement that Trump reneged on was also signed by the heads of government of Britain, Canada, France, Germany, Italy and Japan, all of which have also been hit by the United States tariffs of 25 percent on imported steel and 10 percent on aluminum.

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Late last month, Canadian officials told the Trump administration there were two USA demands they would never agree to in NAFTA: a sunset clause that would automatically terminate the deal in five years and the abolition of the Chapter 19 dispute resolution panels, one source said.

Mr Trump's looming summit with North Korean leader Kim Jong-un heightened tension, and White House economic adviser Larry Kudlow accused Mr Trudeau of betraying Mr Trump with "polarising" statements on trade policy that risked making the U.S. leader look weak on the eve of the historic North Korea summit.

"PM Justin Trudeau of Canada acted so meek and mild during our @G7 meetings only to give a news conference after I left saying that. he 'will not be pushed around.' Very dishonest & weak", he added.

This statement, released by Trudeau, did not go well with Trump, who called the Canadian leader "very weak and dishonest".

U.S. President Donald Trump has backed up threats of tariffs in the past with real trade action, and that's why his latest comments about the Canadian dairy and auto sectors are worrying, and need to be taken seriously, say trade insiders. "All Justin Trudeau had to do was take the win". "Kim must not see American weakness", he said. He had other things, bigger things, on his plate in Singapore.

Trudeau argued that Trump is making a strategist mistake by placing tariffs on Canadian steel.

The group of seven nations that make up the G7 are Canada, France, the United States, the UK, Germany, Japan and Italy. "We don't think that that is a useful or productive way to do business".

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