Trump to stick with hard line on trade as G7 showdown looms

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Trump responded, "Didn't you guys burn down the White House?".

Kudlow, a former CNBC commentator who had frequently criticized tariffs before joining the White House, vigorously defended Trump's trade actions on Wednesday, insisting that he was the "strongest trade reformer of the last 20 years".

Mexico has published the tariffs it is imposing on products imported from the United States in response to the Trump administration's duties on Mexican steel and aluminium. But President Donald Trump has been a fierce critic of NAFTA, and the three countries are holding negotiations on possible changes to the free trade deal.

"It is simply ridiculous to view any trade with Canada as a national security threat to the US", Mr Trudeau has said of the move. "He's sticking to his guns".

"Communication lines are open", he said.

The thing is, the War of 1812 involved a conflict between the USA and Britain. That makes it by far the biggest market for the state's apples.

The agreement governs trade between the US, Canada and Mexico.

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Further complicating the USA relationship with Canada is the ongoing effort to renegotiate the North American Free Trade Agreement, with both leaders saying they are willing to walk away from the pact if talks fail to produce a revised agreement to their liking.

Trump's tariffs, which were announced on May 31 and impose a 25 percent tax on imported steel and a 10 percent tax on imported aluminum, immediately angered foreign trading partners, but a new poll shows that Americans are somewhat split on whether the move will help or hurt the US economy.

These developments make it more hard for any deal to be reached on the North American Free Trade Agreement (NAFTA) that Trump has been trying to renegotiate with Canada and Mexico.

In February, talking about "countries that take advantage of the United States", he said, "Some of them are our so-called allies, but they're not allies on trade".

The move follows a USA decision to impose tariffs on imports of Mexican steel and aluminum purchases, which took effect on Friday.

Those discussions are likely to focus on Trump's decision last week to impose punishing tariffs on imports of steel and aluminum from Washington's closest allies, including Canada, the European Union and Japan.

Mexico's list of products that will be subject to the charges also includes US steel plates, bars, rods and rolled steel.

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It's a dark turn for the G-7, which first met in 1975 when it included only six countries: the U.S., U.K., Germany, France, Italy and Japan.

"We will do what is necessary to protect the United States, its businesses and its workforce", he added.

Governments hosting Group of Seven summits typically select themes that are as non-controversial as possible, and then couch them in vanilla language that everyone can get behind.

"We have on various occasions heard the president speak about his interest or his musings about bilateral deals, instead of the trilateral NAFTA that we have", he said.

"I will of course try to speak to the USA president about the current problems that we have overall, in particular on Iran and on trade tariffs", Merkel told the Bundestag lower house of parliament during a question-and-answer session with lawmakers.

"The Canadians made an impassioned personal plea to Mnuchin to take the case up with Trump", an administration official said. "We're moving towards, you know, flexibility in those areas that I thought was very, very promising". "This is devastating to my family and pork producing families across the United States".

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