Canada fires another shot at United States manufacturers; pushes toward trade war

Canada fires another shot at United States manufacturers; pushes toward trade war

The federal Liberal government is determined to rekindle intensive talks on a new continental trade pact this summer – even though President Donald Trump says he wont sign a renegotiated NAFTA until after the USA midterm elections this fall. Asked about the timing of an agreement, Trump said: "I want to wait until after the election".

Following his overwhelming majority win, Mexico's president-elect Andres Manuel Lopez Obrador said he supports reaching a deal on renegotiating NAFTA with the United States and Canada.

"It's our chance to go and celebrate Independence Day with the Americans and demonstrate we're friends", said Bezan.

However, Trump imposing tariffs on steel and aluminium imports of the March has strained relations between the three countries.

"And escalating tariffs against the United States does nothing to help Canada".

Trump and Trudeau spoke by phone late Friday after Canada announced it would impose its own tariffs in retaliation for the USA tariffs on steel and aluminum imports.

Canada's tariffs will dramatically increase the price of the targeted USA goods in Canadian markets, dampening demand for them and hurting the bottom line of the US companies that produce them. The Trudeau government has described Canada's retaliation as dollar-for-dollar, reciprocal tariffs that target steel, aluminum as well as a long list of consumer goods.

It's no secret there's been tension between Canada and the U.S. recently. The two discussed "mutually beneficial economic and trading relationship between the two countries", Trudeau's office said in a statement.

"We've been very nice to Canada for many years and they've taken advantage of that, particularly advantage of our farmers", she said.

"If they are not fine, I am going to tax their cars coming into America".

But with Trump's inflammatory rhetoric, Canada's retaliatory tariffs against the US and a leftist, anti-establishment Mexican president about to join the fray, there are some who believe any North American Free Trade Agreement talks may be in long-term limbo.

"Canada, you're not going to get 275 per cent for your dairy and you're going to take down all your barriers", Trump said as an example. But as the timelines drag on, Canada's own trip to the polls - now scheduled for October 2019 - is becoming one of the biggest "wild cards", said Ohio-based trade lawyer Dan Ujczo.

Gomez, who said he has campaigned with Lopez Obrador, will be advising the president to use the U.S. government's security interests as leverage in the ongoing trade talks with U.S. President Donald Trump's administration.