Trump asks if Canada burnt down White House in call with PM

07 June, 2018, 13:56 | Author: Natasha Holloway
  • White House chief economic adviser Larry Kudlow says Trump wants separate talks with Canada and Mexico

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.

What is a trade war?

President Donald Trump mentioned the War of 1812 in an attempt to needle Canadian Prime Minister Justin Trudeau during a recent conversation focused on tariffs, CNN reported Wednesday.

"There are disagreements. He's sticking to his guns".

Mr. Trump's chief economic adviser, Larry Kudlow, played down the feud at a White House briefing Wednesday. "The lines are open, the negotiations are ongoing".

Mexico has been a valuable trade partner, as it has become a significant source of US imported crude oil.

Apples are grown in Washington's 8th congressional district, where U.S. Representative Dave Reichert, a Republican, is retiring.

Two-way trade is worth United States $600 billion annually but the USA has a deficit with Mexico of around US $65 billion, which Trump has argued is evidence of unfair trade between the two countries.

When President Donald Trump arrives in Canada this week for a summit of the Group of Seven industrialized nations, he is expected to seek what he considers a better deal for US workers rather than worry about America's leadership role in the world.

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Sources claimed that the president invoked the War of 1812 when his Canadian counterpart asked him how he could justify the tariff change as a "national security" issue, which the administration had done under a 1962 trade law.

The peso sank to its weakest in more than a year earlier Tuesday on concern the U.S. may leave the North America Free Trade Agreement and try to negotiate two separate free trade deals with Mexico and Canada.

"The idea that we are somehow a national security threat to the United States is, quite frankly, insulting and unacceptable", Trudeau said in an interview with NBC News.

The move follows a USA decision to impose tariffs on imports of Mexican steel and aluminum purchases, which took effect on Friday.

Canadian Foreign Minister Chrystia Freeland, pressed about a Washington Post report that said the White House was considering additional economic penalties against Canada, told reporters that Ottawa was unaware of any such move. Mexico had signaled last week that it meant to retaliate against the United States steel and aluminum tariffs. US stocks were trading higher on Wednesday.

Ministers from Germany, France and Britain have already written to US officials urging them to shield European companies working in Iran from getting caught up in Washington's new sanctions on Tehran. "We are pushing through 3 percent", Kudlow said.

President Trump is trying to restructure USA trading relations with all major trading partners at one time, but paying no heed to the institutions and diplomatic etiquette that leaders normally use when dealing with their peers, Mr Rod Hunter, a partner at the global law firm Baker McKenzie, told The Straits Times. "We think that demonstrating the strength of NAFTA as a solid community as we take on the world is very much in all three of our advantages, and we're going to continue to negotiate that way".

"The United States economy is growing".

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