US Kudlow: Canada's Trudeau is "overreacting" to trade dispute

Finance Minister Bill Morneau attends the G7 finance ministers meeting in Whistler B.C. Thursday

It also used the national-security argument to impose tariffs on steel imports from Canada, its neighbor to the north.

Trudeau and Foreign Affairs Minister Chrystia Freeland have called the tariffs insulting, arguing the idea that Canada poses a security threat to the United States is "absurd". "It's going to hurt as well, and neither of those things is something that Canada wants to see", Trudeau said.

Kudlow said steel and aluminum tariffs on US allies "may go on for a while" or "they may not", because the matter is subject to negotiation. Canada, Mexico and the European Union quickly announced plans to retaliate with their own tariffs on American goods.

Trudeau took to American airwaves over the weekend to get his anti-tariff message out, telling NBC's Meet the Press that the USA administration's decision to cite national security to justify tariffs on Canadian aluminum and steel is an insult.

In addition, tariffs against China could cost 134,000 United States jobs, steel and aluminum tariffs could cost 470,000 jobs, and tariffs on autos and auto parts could cost 157,000 jobs, Donohue warned.

The gathering of economic leaders in Quebec will mark the first visit by Mr. Trump to Canada in his role as USA president, who was the first commander-in-chief in 40 years, since Jimmy Carter, not to visit Canada in his first calendar year in office.

Trudeau did not specify what this might mean in relation to actions of the U.S. against Canada, Mexico and the European Union imposing import duties of 25% for steel and 10% aluminum.

The remarks came after finance ministers from the Group of Seven industrialised countries expressed outrage over US-imposed tariffs on steel and aluminum and called on Washington to reverse course.

There was no joint statement at the end of the meeting, which the BBC's North America correspondent Chris Buckler says is a clear sign of discord.

In response, the Canadian government announced a plan to impose retaliatory tariffs on USA metals and other products, including agricultural items, representing a total value of $12.8 billion.

The EU has also signalled its readiness to open a World Trade Organisation case against Washington, while introducing a series of retaliatory tariffs that will go into effect before June 20. "It can be solved if people work together", Kudlow said.

We need to talk about aluminum: Days after the USA imposed new tariffs on steel and aluminum imports, aluminum manufacturers from G7 countries will meet with Trade Minister Jean-Francois Champagne and Quebec Minister of Economy Dominique Anglade to discuss sector and challenges on Monday in Montreal.

"The U.S. dollar is quite a bit stronger than the Canadian dollar", he said.

Pence discussed preliminary issues that the Trump administration wanted clarity on before any in-person meeting at the White House, including the sunset clause, according to a White House official who spoke on condition of anonymity to describe internal discussions.

The head of the White House decreed a 25 percent tariff on steel imports and a 10 percent tariff on Canadian aluminum, citing reasons of national security, a decision that received immediate rejection by the Ottawa authorities.

Investors appeared little rattled over the trade disputes. Mr Trump doubled down on that message Monday morning, taking aim at barriers against American agricultural exports.

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