Published: Wed, June 13, 2018
Global Media | By Garry Long

Navarro sorry for 'special place in hell'' for Trudeau remark

Navarro sorry for 'special place in hell'' for Trudeau remark

Let's call that insight waging trade peace. So how high are tariffs now?

On Monday, the House of Commons unanimously approved a motion showing "solidarity" with the Trudeau government's decision to impose retaliatory tariffs against the U.S. That happens to be the identical rate for Germany, France, Italy, and the United Kingdom.

If the tariffs are implemented, they would shave about 0.6 percent off Canadian economic growth, estimated Brett House, deputy chief economist at Bank of Nova Scotia.

Asked whether allies had any reason to worry about Mr Trump's commitment to any deal he reaches with North Korea following his abrupt withdrawal from the G-7 communique, one US official appeared to brush aside the notion, saying other countries have got used to how the US President operates internationally.

At his closing press conference, Trudeau called USA steel and aluminum tariffs "insulting" and pledged to proceed with previously announced retaliatory tariffs.

Both aides accused Trudeau of betraying Trump when he gave a news conference after the U.S. president had departed. "He is now in Walter Reed Medical Center", the president tweeted.

Canada is America's largest trading partner, he said, adding that the US economy would struggle to make up for Canada's absence in a tariff tit-for-tat.

Trump blasts Canada, calls for Russian Federation to be returned to G8
Putin said last month that the proposed summit between him and Trump was not working out for now and was beset by problems. And I would recommend - and it's up to them, but Russian Federation should be in the meeting, it should be a part of it.

The U.S. and Canada are in the middle of renegotiating the North American Free Trade Agreement along with Mexico.

The U.S. Dairy Export Council reported the value of U.S. dairy exports in 2016 as US$4.8 billion. That figure adjusts to a $17.5 billion trade deficit when services are excluded, according to the USTR.

What's the connection between Canadian retaliation for US tariffs and the withdrawal of USA support for a statement created to advance the "shared values of freedom, democracy, the rule of law and respect for human rights and our commitment to promote a rules-based worldwide order"? They didn't want me to see it, but we found it. This drew a strong rebuke from Donald Tusk, president of the European Council, who asserted that the rules-based global order is being challenged not by the usual suspects (China and Russia) but by its main architect and guarantor, the United States.

On the other hand, a 2017 World Bank study on the costs of protectionism estimated what would happen if countries around the world all increased their tariffs to the legal limits allowed under the World Trade Organization's rules.

With the economy growing at about 2.2 percent, that's lopping off more than a quarter of growth, he said. It's close to $100 billion a year loss with Canada. Approximately 85 percent of those vehicles are exported, with the vast majority going to the U.S. The most popular models shipped to the U.S. include the Toyota RAV4 and the Honda Civic, both assembled in Ontario plants. In a 2017 study, Chinese economists modeled how such a huge across-the board-increase in tariffs would impact the USA economy. In contrast, the real wages in China would fall a negligible 0.03 percent.

It's unclear what additional action the USA would take against Canada.

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