The US trade dispute with Mexico is heating up.
While both Macron and Trudeau have forged cordial relationships with Trump, they made it clear they would not be intimidated by the USA leader – especially in the face of US tariffs on steel and aluminum imports from Canada, Europe, Japan and Mexico.
In the wake of the announcement from Washington, Mexico said it planned to “impose equivalent measures to various products” including pork, certain fruits and some cheese.
The tariffs range between 15% and 25%, and could raise the price of United States goods by that amount, cutting deeply into U.S. exports to its neighbor.
Mr. Trump’s top economic adviser, Larry Kudlow, told reporters on Wednesday that the USA administration won’t back down on the Trump trade and tariffs dispute with US allies. One of the largest reasons for Trump’s reluctance is the host country, the report said.
That put it behind only Canada in terms of the value of United States exports.
Separately, Mexico took steps on Tuesday to make it more attractive for other countries to send it pork by opening a tariff-free quota for some pork imports.
Abe is not the only world leader to have tried charming Trump and failed to come away with concessions from the USA leader.
British Prime Minister Theresa May took a more measured tone, telling reporters she wanted the European Union to use restraint in its retaliation to the US tariffs and that the response must be proportionate and legal.
Analysts say the tariffs are created to hit US Republican strongholds ahead of mid-term elections in November.
They acknowledged trade, tariffs, climate change and how to approach Iran remain sticking points, and may frustrate efforts to come to a final joint communiqué.
“Canada’s a different country than Mexico”.
“The trade gap will narrow if we are allowed to export more to all these countries”, Kudlow said.
“They made an offer most recently that they felt like it was a very fair offer, but I don’t think it moved far enough in that way”, said Perdue.
At the end of last week, Donald Trump removed an exemption to tariffs on imported steel and aluminum that his administration had granted to Mexico, Canada and the European Union.
Threatening such a change could be another effort to advance the negotiations in order to secure a congressional vote on a revised deal by the end of the year, according to global law firm Sandler, Travis & Rosenberg.
Last week, Trump chose to end those exemptions, and the tariffs went into effect on June 1.
As with the proposed European Union tariffs, Canada’s list largely spared fresh produce, except for cucumbers, but includes foods such as ketchup and other tomato sauces, yogurt, strawberry jam, nut purees and pastes, berry and other fruit purees, orange juice, pickles, maple syrup, and prepared bovine meat and meal. “The EU trade surplus with the U.S. is $151 Billion, and Canada keeps our farmers and others out”, he tweeted.
The EU plans to have the first stage of its new tariffs go into effect in July. United States denim, bourbon, motorcycles, peanut butter, motor boats and cigarettes will cost more in Europe as a result.
Foreign Affairs Minister Chrystia Freeland discussed trade and tariffs with key Republicans while she was in Washington for the general assembly of the Organization of American States, a Canadian government official said.
“The President’s trade war is going to cost Virginia ag jobs”, he wrote in a tweet.