Published: Sun, June 03, 2018
Global Media | By Garry Long

Trump says he wouldn’t mind replacing NAFTA with 2 deals

Trump says he wouldn’t mind replacing NAFTA with 2 deals

British Prime Minister Theresa May says the USA decision to impose tariffs on European Union steel and aluminum is "unjustified", and European nations should be permanently exempted.

The EU, Canada and Mexico learned yesterday that they will not be exempted from the decision of US President Donald Trump to slap tariffs of up to 25 per cent on metal imports.

Le Maire's remarks reflected the outrage among American trading partners who announced billions of dollars in retaliatory tariffs to stand up to Washington after it allowed harsh duties on steel and aluminum to take effect. We have to believe that at some point their common sense will prevail.

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

"This is not about the American people", Trudeau said of his retaliatory tariffs, placing blame squarely on the White House.

President Trump on Friday said he "wouldn't mind" breaking up the North American Free Trade Agreement and replacing it by entering into separate trade pacts with Canada and with Mexico. In addition, Foreign Affairs Minister Chrystia Freeland said Canada will challenge the Trump tariffs at the World Trade Organization.

"On trade, over the last couple of days, there was an important difference of opinion", Mr. Morneau told reporters Saturday, describing the USA position on tariffs as "destructive". According to estimates compiled by the Council on Foreign Relations, new auto prices in the US could climb by as much as 0.8 percent, which could result in global sales declines of American-built cars as high as 3.6 percent.

EU joins global battle against Trump tariff onslaught
We will defend the Union's interests, in full compliance with global trade law", Juncker said in a statement. It would also signal no one is safe: Mexico and Canada are the top two buyers of U.S. exports.

Europe, along with Canada and Mexico had been granted a temporary reprieve since President Trump first announced the tariffs in March.

Canadian Prime Minister Justin Trudeau speaks during a news conference in Ottawa, Ontario on Thursday, May 31, 2018. These are two very different countries.

His tweet came hours after the U.S imposed tariffs on steel and aluminum from Canada, Mexico, and the European Union.

The tit-for-tat trade spat comes after nine months of negotiations between Canada, Mexico and the United States to revamp NAFTA bogged down. But a trip already fell apart when Trudeau was informed by Vice-President Mike Pence in a phone call that the United States would mandate a "sunset" clause of five years in the new trade agreement.

They are calling for decisive action from Washington and are urging U.S. Treasury Secretary Steven Mnuchin to deliver their message before next week's leaders' summit. "The idea that we are somehow a national security threat to the United States is quite frankly insulting and unacceptable".

German Finance Minister Olaf Scholz said G7 countries also told Mnuchin about their opposition to new US sanctions on Iran, which will affect European companies.

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