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Published: Sat, July 07, 2018
Global Media | By Abel Hampton

Canada not helping itself by hitting USA with tariffs: White House

Canada not helping itself by hitting USA with tariffs: White House

The president's decision to push back the NAFTA talks comes as the USA and Canada have been engaged in a tit-for-tat trade dispute over Trump's tariffs on Canadian steel and aluminum.

Mexican president-elect Andres Manuel Lopez Obrador said he supports the continued renegotiation of NAFTA, and wants his own team of experts to be part of the talks before he takes office December 1.

Trump, however, has said he wants to wait until after November's USA congressional midterms before committing to a new agreement. In a Fox News interview that aired Sunday, Trump said he was holding out until after the fall's midterm election to get a better deal for the U.S.

Quebec's dairy producers association disagreed, telling The Associated Press in an email that American overproduction is the real cause of the U.S.'s problem with Canada's dairy tariffs.

The president has suggested he may pursue separate trade pacts with Canada and Mexico instead of continuing with a three-country deal.

"Protective measures would undermine USA growth, negatively impact job creation, and not improve the trade balance", European Union leaders wrote in the 11-page document, adding that auto tariffs would "damage further the reputation of the United States".

Kentucky bourbon is among the dozens of consumer products that have been slapped with tariffs by Ottawa as part of its retaliation for USA duties on Canadian steel and aluminum.

Trump himself has already threatened to go even further by putting tariffs on the auto sector, which could prove far more damaging for the Canadian economy than the steel and aluminum duties.

Canada's Prime Minister Justin Trudeau announced Monday that Canada will impose retaliatory tariffs on $12.6 billion worth of USA goods in response to President Donald Trump's steel and aluminum tariffs.

"We've been very nice to Canada for many years, and they've taken advantage of that - particularly advantage of our farmers", Sanders said.

"I certainly understand and sympathize with the Canadian position of Prime Minister Trudeau that if you are going to be faced with a unilateral set of tariffs being imposed by the United States, it's only natural that other nations respond".

As part of his combative America First approach, Trump has repeatedly attacked the trade policies of the United States' northern neighbour, citing Canada's triple-digit tariffs on dairy products, which account for only about 0.1 per cent of US-Canada trade.

"That's why we've got to be very careful in how we escalate our response", he said.

Trudeau has insisted the USA president's complaints about Canada's trade barriers are the result of his refusal to give in to Trump's demands to do away with the country's supply-managed system that protects dairy, poultry and eggs farmers. The move has been viewed as a possible negotiating ploy to restart NAFTA talks, which could resume following Sunday's elections in Mexico. But as the timelines drag on, Canada's own trip to the polls - now scheduled for October 2019 - is becoming one of the biggest "wild cards", said Ohio-based trade lawyer Dan Ujczo.

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