Mexico takes aim at Trump and United States midterm elections
Mexico takes aim at Trump and United States midterm elections
Trump wants separate trade deals with Canada, Mexico, says adviser Kudlow
07 June, 2018, 06:28
The Canadian government is rejecting a push by the Trump administration to strike separate, bilateral trade deals with Canada and Mexico instead of pushing ahead with a stalled effort to renegotiate the North American Free Trade Agreement.
Mexico has published the tariffs it is imposing on products imported from the USA in response to the Trump administration's duties on Mexican steel and aluminium. European allies have urged Trump to reconsider. US stocks were trading higher on Wednesday.
Now the EU, Mexico and Canada are beginning to make good on those threats.
Trudeau has denounced the "national security" justification for the new tariffs.
The conflict was provoked by a decade of British provocations against the USA, including impressing American sailors, imposing restrictions on American trade and providing support for Indian attacks on frontier settlements.
Trump expanded the tariffs on steel and aluminum to the United Kingdom, Canada and the European Union on May 31 after extending exemptions in March.
A tariff is basically a tax on imports that raises the price of foreign company's products for American consumers, putting imports at a disadvantage to domestic producers.
"Let us modernise what needs to be modernised", he added in reference to the WTO.
The United States is reportedly preparing to unleash another round of tariffs on Canada as retribution for its Can$16.6 billion (US$12.9 billion) in tariffs on U.S. goods. In a tweet the next morning, he mused about shutting Canadian wood products out of America. Steel exports to the US also make up more than half of Mexican production.
In 2017, Mexico imported a total of the $10.5 billion worth of steel products, of which the US accounted for 36 percent, or nearly $3.8 billion, according to USA government data. By comparison, China buys just $116 billion.
"When you have to compromise with a whole bunch of countries, you get the worst of the deals", Kudlow said.
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United States goods exported to China previous year totalled US$130 billion while Chinese imports to the USA totalled US$506 billion.
Kudlow also insisted that the U.S. relationship with Canada, in particular, was still "very good".
So far, only Canada and Mexico have done so.
"Why is the prime minister waiting.to impose steel and aluminum countermeasures when those US tariffs are in effect right now?"
While tariffs on these products won't have much of an impact on the overall US economy, they could be especially painful for particular industries or regions. In 2017, it was the second-largest importer of USA steel and steel products, which will now face an additional 25 percent tariff, in line with what the US has imposed.
Countries that import USA pig meat. Certain cheeses and bourbon will be hit with 20% to 25% duties.
"Canada's position is and always has been that the trilateral approach is actually better for Canada, Mexico and the United States". The automotive industry is particularly vulnerable in this regard.
The meeting on Friday and Saturday in Charlevoix, Quebec, will be the first chance G7 leaders have had to confront Trump in person since US tariffs on steel and aluminum imports from Canada, Mexico and the European Union were imposed last week.
For example, if automakers have to pay more for the steel used in cars, you'll see that effect when you visit your local dealer. "The President's trade war is going to cost Virginia ag jobs".
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