White House economic advisor Larry Kudlow stated on the weekend that Canadian Prime Minister Justin Trudeau is "overreacting" to the ongoing NAFTA dispute that saw the USA impose hefty steel and aluminum tariffs on Canada and Mexico, as well as the European Union, late last week.
"We're putting the same kinds of tariffs exactly on steel and aluminum coming from the United States into Canada to be directly reciprocal", said Trudeau.
Trudeau didn't specify what that might mean in the wake of USA measures aimed at Canada, Mexico and the European Union that slap import duties of 25 per cent on steel and 10 per cent on aluminum.
The White House announced its intention to implement tariffs on steel and aluminum imports from allies Canada, Mexico and the European Union, invoking national security as justification.
"It's going to hurt U.S.jobs as well, and neither of those things is something that Canada wants to see", Trudeau said. The measures are particularly controversial for Canada and Mexico, America's NAFTA partners long-committed to free-trade with the US.
Mr. Trump justified it as necessary to ensure American "national security" because restricting these imports under Section 232 of the U.S. Trade Expansion Act would expand the United States' own capacity to construct its own tanks and warships.
The United States Chamber of Commerce Building stands at the northeast corner of H and 17th streets NW in Washington, D.C.
Speaking on "Fox News Sunday", Larry Kudlow said that the Trump administration's confrontation with Canada is a "family quarrel" that can still be resolved through negotiations.
Canadian officials have said that their proposed tariffs are meant to affect about $12.8 billion in goods coming from the US, roughly equal to the amount of Canadian goods hit by the Trump tariffs.More news: Fired-up Sharapova blasts her way past Pliskova at French Open
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According to a Reuters report, Japanese Finance Minister Taro Aso called the usa tariff actions "deeply deplorable".
"What the United States is going to say is that there is a provision in the [World Trade Organisation] that says, 'Yes, you can break your tariff commitments, you can discriminate if you fall under the terms of this security exception, ' " she says.
"We are concerned that these actions are actually not conducive to helping our economy - they actually are destructive". He said Trump is simply responding to decades of trade abuse.
"French Finance Minister Bruno Le Maire also said Mnuchin was clearly isolated at on the tariff issue, with the group devolved to a "G6 plus one" with the six expressing "total incomprehension" over the destabilizing USA move".
The G7 ministers urged US Secretary of the Treasury Steven Mnuchin to deliver their message before leaders of the group's member countries meet on Friday and Saturday in Quebec, adding that the US should abandon the tariffs ahead of the leaders' summit before the move causes deeper divisions within the G7.
Le Maire said it's now up to the U.S.to take action to rebuild confidence among G7 members - and to avoid any escalation next week during the G7 leaders' summit.
Orange juice is one example of a US good that can't be substituted easily at home. "We're going to be polite, but we're also not going to be pushed around", Trudeau said.
"We need to demonstrate that as a sovereign nation we're in charge of our affairs and we can't accept that someone damages our economy for reasons that make no sense", said Morneau, who insisted he doesn't know the American motivation behind the tariffs.