Administration Pushes Toward Bilateral Deals With Canada, Mexico

08 June, 2018, 10:58 | Author: Diane Mills
  • Dairy cows. THE CANADIAN PRESS  Jonathan Hayward

The US president in an earlier tweet on Thursday said that Canada and France are charging the US massive tariffs and creating "non-monetary barriers".

The EU also has announced a series of retaliatory tariffs of 25% on roughly 200 American products, including orange juice, that are set to take effect in July.

At the heart of the rift, US President Trump's new tarrifs on steel and aluminium imports - and the threat of a global trade war.

The U.S. agricultural food sector will bear the brunt of the import tariffs imposed by Mexico, equivalent to $2.62 billion of products targeted.

The federal government also continued its outreach with top US lawmakers on Tuesday.

Canada's premier appeared to have struck up an unlikely friendship with Mr Trump at their first meeting, saying he would never dream of "lecturing" his host even if the USA president's "America First" agenda is anathema to the arch liberal.

Mexico's trade negotiators designed the list, in part, to include products exported by top Republican leaders' states, including in, where Vice President Mike Pence was formerly governor, according to a trade source familiar with the matter.

The Mexican tariffs will hit its pork, dairy and potato exports, Minnesota state officials said.

The Trump administration said it needs to impose tariffs on steel and aluminum imports because overcapacity in those industries globally is hurting United States steel mills and aluminum smelters by driving down the prices of their products, forcing many out of business.

During an interview Tuesday on Fox & Friends, Kudlow disclosed that he had met with the president at least twice on Monday to discuss trade.

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Mexico announced its response to Trump's move last week but it did not provide details of tariff levels or a full list of products at the time.

Earlier this week, China renewed its promise to impose import duties on an additional $50 billion worth of USA goods, including more agricultural products, if the US pushes forward with potential tariffs on $50 billion worth of Chinese goods.

Perdue said despite the recent steel and aluminum tariffs, he's optimistic that a deal on dairy is close that will provide changes; changes that could be good for USA dairy.

Trump doesn't plan on withdrawing from NAFTA, but he wants to try a different approach, Kudlow said, adding that his boss "hates multilateral" treaties.

The EU was the No. 1 export destination for the state's farm products in 2016, followed by Canada, China/Hong Kong, Japan and Mexico. Last week Washington said it was ending a two-month exemption it had granted to imports from Canada, Mexico and the European Union.

Trump has since mused about replacing NAFTA with bilateral trade deals with Canada and Mexico - an idea Trudeau shot down on Wednesday. Canada has also strongly objected to the metals tariffs.

"It is especially frustrating to see U.S. pork caught up in a dispute that has nothing whatsoever to do with pork trade", the U.S. Meat Export Federation said in a statement issued in anticipation of Mexico's retaliation.

After the USA announced it would impose the tariffs, a senior official told The Canadian Press that the chances of striking any deal on NAFTA-ever-had "just fallen through the floor". Kudlow, in line with the longstanding expert consensus in the G7 industrialised democracies, had long opposed tariffs before joining Trump's team, but now says he agrees that the trade status quo hurts America.

Canada has also announced plans to retaliate with tariffs of up to 25% on almost $13 billion of USA products, set to take effect on July 1.

"It will surely come from Europe, from some European countries".


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