Canada's Justin Trudeau says NAFTA talks broke down after Pence made ultimatum

Canada's Justin Trudeau says NAFTA talks broke down after Pence made ultimatum

Canada's Justin Trudeau says NAFTA talks broke down after Pence made ultimatum

U.S. unemployment fell to an 18-year low and employers added a net 223,000 new jobs, beating forecasts and delighting Trump, who has taken credit for the economy's performance.

Earlier in March, Trump had announced the said tariffs to be applicable worldwide while exempting Canada, Mexico and the European Union but with his recent move, the three countries will now face the brunt of trade tariffs along with other countries.

Japanese Finance Minister Taro Aso criticized Washington's decision as "deeply deplorable", adding that it was the "US against everyone else".

Continuing his tirade against the USA tariffs, Trudeau said that Canada would challenge the same at the NAFTA and WTO in the interests of its workers and businesses.

Fears of a trade war between the USA and its G7 allies intensified as finance ministers from across the nations voiced anger at the Trump administration's steel and aluminium tariffs.

"We look forward to continued negotiations, both with Canada and Mexico on the one hand, and with the European Commission on the other hand, because there are other issues that we also need to get resolved", U.S. commerce secretary Wilbur Ross said.

Companies around the world have expressed concern about the tariffs and the risk that it could escalate into a trade war, in which both sides hit each other with tit-for-tat measures.

The Canadian government announced retaliatory tariffs on United States goods that look to go beyond the value of United States tariffs on imports of Canadian steel and aluminum.

Mexico's ministry of economy pledged to impose equivalent measures, and included a partial list of USA goods that would face tariffs, including pork bellies, cheese, and produce such as grapes and apples.

See the full list of products that are now subject to tariffs.

More news: Uber CEO doubles down on self-driving tests

Canada announced plans to slap tariffs on $12.8 billion worth of USA products, ranging from steel to yogurt. "That is not Free or Fair Trade, it is Stupid Trade!" the president said on Twitter.

The administration is taking the action under a relatively obscure USA trade law meant to protect national security.

They have targeted goods manufactured in key U.S. political districts that could weaken Trump's hand after November's mid-term elections.

"It's been a lousy deal for the United States from day one", Trump said.

The decision by the American leader to slap 25 percent and 10 percent tariffs respectively on the metal imports was wrong and illegal, the International Trade Secretary insisted. We do not have any other choice but to respond.

The European Union and Canada are the largest USA exporters of steel and aluminum respectively.

Canada's finance minister says talks among world economic officials will be hard this weekend following the USA decision to impose steel and aluminum tariffs on its closest allies.

"The G7 ought to collectively tell China to follow global rules", Japan's Aso said.

Canadian Prime Minister Justin Trudeau said months of intense negotiations between his country, the United States, and Mexico imploded on Tuesday when Vice President Mike Pence demanded that any deal expire automatically in five years.

Latest News