President Trump is accusing the country's prime minister of making false statements, and the president's trade adviser saying there's "a special place in hell" for the leader of Canada, our biggest trading partner in all of the world, our best friend from way back in World War II and every time in between. And I see the television and he's giving a news conference about how he will not be pushed around by the United States and I say push him around?
Dairy has emerged as the latest flashpoint between the USA and Canada as they renegotiate the 1994 North American Free Trade Agreement. "He did a great disservice to the whole G7", economic advisor Larry Kudlow said on CNN on Sunday. Trump refused to endorse the group's joint statement, said Russian Federation should be readmitted, and traded barbs with Trudeau over an intensifying trade conflict.
So US allies were much surprised when Trump suddenly began attacking Canadian Prime Minister Justin Trudeau for comments at a news conference and rescinded his support of the joint statement by the G7. It's either 17 but could actually be 100 billion.
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"You don't just behave that way".
"I have made it very clear to the president that it is not something we relish doing, but it is something that we absolutely will do", Trudeau said. Perhaps they were trying to show the power they have.
The president cites national security for imposing a 25 percent tariff on Canadian steel, and 10 percent on aluminum. "They don't take our farm products", Trump complained at the news conference Tuesday.
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.
But Gregg Doud, the chief agricultural negotiator in the Office of the United States Trade Representative, told Reuters on Thursday that the USA has "very serious concerns about the subsidies and the structure of Canada's dairy industry". The likelihood of a trade war between the United States and Canada appears to be on the rise, and both sides are mulling more trade barriers. The U.S. had a trade surplus with Canada of $8.4 billion a year ago, according to the Office of the United States Trade Representative.