Trump to face tough crowd at G-7 amid tariff fight

The British burned down the White House in the War of 1812, when Canada was a British colony.

What administration officials have insisted is only a "trade dispute" appears closer to becoming a trade war.

Scheer's positions largely echo the stance the governing Liberals are taking on the matter with Prime Minister Justin Trudeau outright rejecting a one-on-one trade talk with the US and drawing a line in the sand with the USA over the idea of a five-year sunset clause on a new NAFTA deal.

"There are disagreements. He's sticking to his guns".

In an interview Tuesday, Chief Economic Adviser Larry Kudlow said the president was contemplating separate bilateral discussions.

His remarks came as tensions mount over the US decision to end an exemption on steel and aluminum tariffs that had initially been granted for Canada, Mexico and the EU. That falls short of the US$200 billion over two years that the Trump administration has demanded the Chinese government buy to address a yawning trade imbalance.

So it's no surprise that at the G7 finance minister's summit last Saturday, Mnuchin faced blowback from allies. The EU also attends. In addition, China would buy more US crude oil and natural gas exports to quench its thirst for energy.

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The exchange occurred when Trudeau requested justification for the stated "national security" interests of tariffs on Canada, since the nation is among the closest and most reliable USA allies.

Sources with knowledge of the Trump administration's thinking say the President's annoyance with Ottawa has actually been building for almost a year: When the Trump administration started NAFTA renegotiations last summer, it expected Canada to gang up on Mexico and help force it to give up auto jobs that had been lured south. "This is devastating to my family and pork producing families across the United States". "The lines are open, the negotiations are ongoing".

Police officers stand near the Congress Center prior to the beginning of the G7 Summit in Quebec City, June 6, 2018.

With its presidential election 26 days away, Mexico's government imposed a 20 percent tariff on US pork, apples and potatoes and 20 to 25 percent tariffs on cheese and bourbon. The White House press office did not immediately respond to a request for comment.

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. As of May 31, they've all expired, and the US government decided not to renew them.

Adding to the uncertainty is European anger over Trump's decision to pull the United States out of the global nuclear agreement with Iran. Trump is unlikely to back away from the nationalistic policies that have frustrated and unnerved allies but which he sees as key promises to his most loyal voters. But observers noted that Trudeau's pointed rebuke last week, calling for "common sense" to prevail in the United States administration, marked a turning point for the worse in the relationship. France would also oppose any wording that described the Iran pact as obsolete, the official added.

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