From distillers to farmers, trade war would cause casualties

From distillers to farmers, trade war would cause casualties

From distillers to farmers, trade war would cause casualties

The steel and aluminium tariffs could also complicate the United States administration's efforts to renegotiate the North American Free Trade Agreement with Canada and Mexico, a pact which Mr Trump has condemned as a job-killing "disaster".

President Donald Trump says Canada has mistreated USA farmers on trade and officials there "must open their markets and take down their trade barriers!"

Mexico also plans tariffs on a variety of USA products, including flat steel. After 60 days, if consultations have failed to resolve the dispute, the European Union may request adjudication by a panel.

Canada responded with duties of 25 percent on United States steel and aluminum, and 10 percent on consumer goods such as ketchup, orange juice, sailboats and washing machines, which will take effect July 1.

Finance Minister Taro Aso said Friday the USA tariffs on steel and aluminum are "extremely regrettable", and that Tokyo could file a challenge with the World Trade Organization. "I had to highlight that there was no possibility of any Canadian prime minister signing a NAFTA deal that included a five-year sunset clause, and obviously the visit didn't happen", Trudeau said.USA officials have said the three countries are still talking about ways to salvage NAFTA, though at this point it looks like an agreement-if one is reached-is a long way away.

The EU's planned retaliatory measures, meanwhile, are created to do maximum harm to USA prestige and economic interests, with them threatening to hit $3.5 billion of goods, including iconic products such as blue jeans, motorcycles, and bourbon whiskey, as well as agriculture.

Group of Seven nations moved closer to a trade war with the United States on Saturday, as six members of the exclusive club singled out their American partner over tariffs they warn have undermined open trade and shaken confidence in the global economy.

After parsing the statements of Foreign Affairs Minister Chrystia Freeland and U.S. Commerce Secretary Wilbur Ross, Miller said it is clear the two countries want to do that.

"The effect of tariffs is going to be to increase unemployment very sharply because now aluminum and steel are going to be sold not to America, but to manufacturers in Asia and in Europe, and they can now produce their manufactures with lower-priced aluminum and lower-priced steel and undersell American manufacturers", he added.

The said tariffs came into force on Thursday midnight. The consequences will be more severe if significant retaliatory actions harm USA exports.

While the United States administration's decision to hit its European and North American allies with the metals tariffs was not aimed directly at China, it also sets the background for negotiations with Beijing, where Ross was headed on Friday for talks.

"It is not every day that a Canadian head of government pointedly notes that he is dealing with a USA administration that is short on common sense" or "that a prime minister uses a news conference to dig in his heels in a trade negotiation", she noted.

The Mexican measures target pork legs, apples, grapes and cheeses as well as steel - products from USA heartland states that supported Trump in the 2016 election.

Ministers urged the U.S.to quickly abandon the tariffs ahead of the leaders' summit before the move causes deeper divisions within the G7.

Mexico announced "equivalent" measures on a wide range of USA farm and industrial products, including pork legs, apples, grapes, cheese, steel and other goods.

Canada will coordinate its WTO case with the European Union, which also filed a challenge.

That summit will mark Trump's first visit to Canada as president.

Bruno Le Maire, France's economy and finance minister, said a G7 trade war should be avoided.

"We'll be pursuing every particular avenue to point out that this is not just damaging to Canadians, it damages the United States", he said.

Related news



[an error occurred while processing the directive]