U.S. isolated at G7 meeting as tariffs prompt retaliation

[rooster59]

U.S. isolated at G7 meeting as tariffs prompt retaliation

By Leika Kihara and Gernot Heller

 

Delegates pose for an official photo at the G7 Finance Ministers Summit in Whistler, British Columbia, Canada, June 1, 2018. REUTERS/Ben Nelms

 

WHISTLER, British Columbia (Reuters) - The United States' closest allies attacked the Trump administration on Friday for imposing tariffs on steel and aluminum imports and mounted challenges with the world's top trade body, fouling the mood at a G7 finance leaders meeting.

 

U.S. Treasury Secretary Steven Mnuchin was the prime target of the criticism at the meeting of Group of Seven finance ministers and central bank governors in Canada, with the six other G7 member countries subject to the U.S. metals tariffs, which were imposed on national security grounds.

 

The tariffs also are complicating U.S. efforts to gain cooperation to challenge China's trade practices as U.S. Commerce Secretary Wilbur Ross arrives in Beijing on Saturday for talks aimed at averting a U.S.-China trade war.

 

Japanese Finance Minister Taro Aso, whose country's steel and aluminum producers have been paying the U.S. metals tariffs since March 23, called the U.S. action "deeply deplorable."

 

"This doesn't happen that often at G7 meetings, but it was U.S. against everyone else," Aso told reporters.

 

The European Union and Canada both filed challenges with the World Trade Organization.

 

Canadian Foreign Minister Chrystia Freeland said in a statement that the tariffs were "imposed under a false pretext of safeguarding U.S. national security."

 

At the G7 meeting in the Canadian ski resort of Whistler, British Columbia, Canadian Finance Minister Bill Morneau said he expressed to Mnuchin "our absolute view that this is absurd that Canada could in any way be a security risk."

 

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 U.S. move.

 

"We must find a way to get out of this," German Finance Minister Olaf Scholz told reporters. "That was said clearly by everyone and I think it was even taken on board" by Mnuchin.

 

Mnuchin, regarded as one of the more moderate trade voices in Trump's cabinet, said the issue may need to be resolved by G7 leaders at a summit next week in Charlevoix, Quebec, officials attending the meetings said.

 

The U.S. tariffs of 25 percent on imports of steel and 10 percent on aluminum were imposed early on Friday on Canada, Mexico and the European Union after they refused to accept steel and aluminum quotas in negotiations with U.S. Commerce Secretary Wilbur Ross.

 

TRUMP'S TWITTER TIRADE

 

Trump took to Twitter again on Friday to castigate Canada after his testy exchange with Canadian Prime Minister Justin Trudeau on Thursday over rocky negotiations to update the North American Free Trade Agreement.

 

Trump tweeted that Canada had treated U.S. farmers "very poorly for a very long period of time."

 

"Highly restrictive on Trade! They must open their markets and take down their trade barriers! They report a really high surplus on trade with us," he wrote.

 

Later on Friday, Trump told reporters that he might prefer separate trade deals with Canada and Mexico instead of a revamped NAFTA.

 

The White House said Trump told French President Emmanuel Macron of the need to "rebalance trade with Europe."

 

Trump's words followed swift responses to the tariffs by Canada, Mexico and the EU, which plan to retaliate with levies on billions of dollars of U.S. goods, including orange juice, whiskey, blue jeans and Harley-Davidson motorcycles.

 

Harley-Davidson's stock dropped about 1 percent on Friday, while shares of steelmakers U.S. Steel and AK Steel both rose 2.2 percent. The broader stock market rebounded on strong monthly jobs data.

 

Canada, the largest supplier of steel to the United States, said it will impose tariffs covering C$16.6 billion ($12.8 billion) on U.S. imports, including whiskey, orange juice, steel, aluminum and other products.

 

Mexico announced "equivalent" measures on a wide range of U.S. farm and industrial products, including pork legs, apples, grapes, cheese, steel and other goods.

 

The EU plans tariffs on U.S. exports running the gamut from canoes to "manicure or pedicure preparations."

 

"We are determined to protect the multilateral system," EU Trade Commissioner Cecilia Malmstrom said of the WTO challenge. "We are expecting everybody to play by the rules.

 

CHINA COMPLICATIONS

 

The complaints came on the eve of a visit by Ross to China to try to secure long-term purchases of U.S. farm and energy commodities to help shrink the U.S. trade deficit. The U.S. team also wants to secure greater intellectual property protections and an end to Chinese subsidies that have contributed to overproduction of steel and aluminum.

 

Officials at the G7 meeting said the tariffs made it more difficult for the group to work together to confront China's trade practices, especially when Beijing, like most G7 members, supports the current WTO-based trade rules and the United States is seeking go around them.

 

Le Maire asked Mnuchin, "How can you get the Chinese to respect international law if you don't?" one meeting participant said.

Mnuchin did not comment to reporters as he left the G7 meeting on Friday. The talks conclude on Saturday.

 

Eswar Prasad, trade professor at Cornell University and former head of the International Monetary Fund's China division, said that U.S. tariff actions are increasing perceptions that Washington is an unreliable trading partner.

 

"Rather than creating a common front to address widely held concerns about China's trading and economic practices, Trump has succeeded in alienating key U.S. allies and undercutting broader external pressure on China," he said.

 

For the EU, a decision on how far to push back will require agreement among the 28 member states that make up the world's biggest trade bloc.

 

Germany, by far the biggest exporter to the United States, is keen to avoid a wider trade war, especially as the Trump administration has floated the prospect of tariffs on cars, which would potentially be devastating to German exporters.

 

Other EU countries such as France favor a more robust stance against what they see as American bullying.

 

 

-- © Copyright Reuters 2018-06-02

[evadgib]

 

https://www.gov.uk/government/news/operational-note-for-uk-industry-us-steel-and-aluminium-tariffs

 

https://www.gov.uk/government/news/imposition-of-us-steel-and-aluminium-tariffs-deeply-disappointing

[stevenl]

" "Rather than creating a common front to address widely held concerns about China's trading and economic practices, Trump has succeeded in alienating key U.S. allies and undercutting broader external pressure on China," he said. "

At least Trump is consistent, and is continuing on the same path.

[Jingthing]

16 minutes ago, stevenl said:

" "Rather than creating a common front to address widely held concerns about China's trading and economic practices, Trump has succeeded in alienating key U.S. allies and undercutting broader external pressure on China," he said. "

At least Trump is consistent, and is continuing on the same path.

Like a bull (s--t) in a China shop! Make it stop! 

Sure, empires rise and empires fall. But with "trump" it's like a death wish to make the USA decline as fast and brutal as possible. 

Edited June 2, 2018 by Jingthing

[MrMuddle]

Good to see the U.S. isolated, frack 'em.

[impulse]

5 minutes ago, MrMuddle said:

Good to see the U.S. isolated, frack 'em.

 

Said the guy posting in English and not in German, Russian or Japanese.   As if there would be any posting at all without the Yanks and our tax dollars.

 

You're welcome.  Better polish up on your Mandarin if you frack 'em too hard and still want to live in SEA.

 

 

Edited June 2, 2018 by impulse

[connda]

With the US handing out tariffs and sanctions like candy, other nations will eventually figure out that the smartest path forward is to ditch the USD and form strong trading corridors and infrastructures between themselves and shut shut out the indispensable nation's economic hegemony. 
Ain't here yet, but it is coming. 

[3421abc]

Time for the little kids to gang up and take down the big bully.

[buick]

i'm an american and i like the idea of re-working the trade deals.  seems reasonable that they can be changed from time to time.  but i don't like the 'national security' claim which is being used to circumvent the 'normal' process (if there is a 'normal' process !!!).

 

i don't consider germany an ally of the USA as the article infers.  a big exporter to USA, yes, but an ally ?  not currently an enemy by any means, but i wouldn't group them in with 'closest allies'  as the article does:

 

3 hours ago, rooster59 said:

The United States' closest allies attacked the Trump administration

 

[KCPhuket]

Serial killers are also "consistent".

[Morch]

What a cluster <deleted> of a presidency.

 

I understand the US wishing to correct (if that's the right term) some long-standing trade issues. And yes, in some ways trade partners might have been unfair (perhaps more applicable to China, though). But that's no way to handle things - not when you need other countries' cooperation and support on other matters.

 

Doubt Trump would be around for another term, or that another quite like him will be elected. The next POTUS would have to work hard mending relations with the world, but don't see the US dollar being dropped, or the US shunned. That said, countries will probably be more serious thinking of alternatives.

[mfd101]

Much of this is good, of course, though not for good reasons (ignorance, stupidity, bullying etc).

 

Sudden discontinuities force us to rethink, to reconsider what's important & what isn't, to review long-lasting relationships & consider new ones [like moving to Thailand!].

 

Countries such as Australia are carefully considering their options and working out how to keep the old while adjusting to awkward new realities: increasing Usofan unreliability in all domains, likely Chinese economic hegemony combined with bullying attitudes on security & likely long-term political fragility ... A brave new world that challenges our complacency, our old ideas, and our lack of imagination.

[cycolista]

Trump is just appeasing his KGB handler, Putin.

[dunroaming]

3 hours ago, impulse said:

 

Said the guy posting in English and not in German, Russian or Japanese.   As if there would be any posting at all without the Yanks and our tax dollars.

 

You're welcome.  Better polish up on your Mandarin if you frack 'em too hard and still want to live in SEA.

 

 

Well I wouldn't bother with mandarin.  In China English is fast becoming the preferred language and all the younger educated Chinese speak it perfectly well.  So unless you want to live in rural China (where there are hundreds of dialects anyway) then just stick with English.

 

So much of the world economy is tied up with US dollars that it is still an important currency.  However the world power has shifted and where the USA was once kingpin it is not anymore.  China has far more influence and with a rising India  as a new heavyweight the world order is changing.  Trump is speeding up that process in leaps and bounds.

 

The answer is not to "frack" America but to "frack" their worst enemy.... A certain moron called Donald Trump!

[dunroaming]

2 hours ago, buick said:

i'm an american and i like the idea of re-working the trade deals.  seems reasonable that they can be changed from time to time.  but i don't like the 'national security' claim which is being used to circumvent the 'normal' process (if there is a 'normal' process !!!).

 

i don't consider germany an ally of the USA as the article infers.  a big exporter to USA, yes, but an ally ?  not currently an enemy by any means, but i wouldn't group them in with 'closest allies'  as the article does:

 

 

An "ally" is an odd thing to identify with and falls into different categories.  We are all happy to be America's closest ally when it come to trade.  When it comes to military backup then it is less clear.  Apart from certain areas of the world most of us want to be allies with the USA but not allies with Trump. An example of that can be seen by the vitriol towards him from the British people, concerning his visit, against the popularity of the American people and their country in general. The USA is a great country but it is being severely damaged by the poisonous so called president.

[poanoi]

4 hours ago, impulse said:

 

Said the guy posting in English and not in German, Russian or Japanese.   As if there would be any posting at all without the Yanks and our tax dollars.

 

You're welcome.  Better polish up on your Mandarin if you frack 'em too hard and still want to live in SEA.

 

 

yeah, and if it wasnt for the french,

the american colonists woulda spoken english etc

[buick]

9 minutes ago, dunroaming said:

An "ally" is an odd thing to identify with and falls into different categories.  We are all happy to be America's closest ally when it come to trade.  When it comes to military backup then it is less clear.  Apart from certain areas of the world most of us want to be allies with the USA but not allies with Trump. An example of that can be seen by the vitriol towards him from the British people, concerning his visit, against the popularity of the American people and their country in general. The USA is a great country but it is being severely damaged by the poisonous so called president.

i understand it is difficult right now with trump.  i like many of his ideas but he hasn't carried them out in the best fashion starting from his inaugral address.  germany is not anywhere close to the status of canada, the UK, and france in terms of an ally (i'd add australia in there also).  i've heard this before (germany is a great ally of USA) and didn't like it much.  so this part of the article stood out to me.  just because it is the G7 doesn't make everyone there the 'closest allies' of the USA.  if you are from the UK and would like to reduce your 'ally' status for awhile, i understand.  you are welcome back any time.

[Bluespunk]

6 hours ago, rooster59 said:

The tariffs also are complicating U.S. efforts to gain cooperation to challenge China's trade practices as U.S. Commerce Secretary Wilbur Ross arrives in Beijing on Saturday for talks aimed at averting a U.S.-China trade war.

 

Yeah, hypocrisy does tend to complicate things. 

[buick]

6 hours ago, rooster59 said:

The United States' closest allies attacked the Trump administration on Friday for imposing tariffs on steel and aluminum imports and mounted challenges with the world's top trade body, fouling the mood at a G7 finance leaders meeting.

i think the article is written with somewhat of a bias (as usual).  an unbiased version of the above would start of with 'the G7 attacked the trump administration'.  but many journalists have to take an extra shot when one really isn't needed.

[MrMuddle]

4 hours ago, impulse said:

 

Said the guy posting in English and not in German, Russian or Japanese.   As if there would be any posting at all without the Yanks and our tax dollars.

 

You're welcome.  Better polish up on your Mandarin if you frack 'em too hard and still want to live in SEA.

 

 

I'm posting in English because that is my native language. I mean proper English, not some ersatz american version, where spelling is made easier, in order to dumb the language down, as it was too difficult for your country to comprehend.

I think you'll find your tax dollars going down much more in future, as other countries retaliate to buffoon Trump's' bullying.

Is it wise to mention SEA ? Your lot didn't do very well in their last foray here. Running like scared rabbits on the embassy roof, if I remember correctly.

[mlmcleod]

6 hours ago, stevenl said:

" "Rather than creating a common front to address widely held concerns about China's trading and economic practices, Trump has succeeded in alienating key U.S. allies and undercutting broader external pressure on China," he said. "

At least Trump is consistent, and is continuing on the same path.

Hmm Putin could not do a better job of isolating the United States.  His money to buy the election for Trump is paying huge dividends!  Perhaps, if Trump can avoid jail he will retire in a nice Moscow condo!

[Jingthing]

Hmm Putin could not do a better job of isolating the United States.  His money to buy the election for Trump is paying huge dividends!  Perhaps, if Trump can avoid jail he will retire in a nice Moscow condo!

Exactly. It's beyond creepy. "trump" has taken the people of the USA as hostages and many of them are so messed up that they like it and are blind to the long term damage he's doing.

Sent from my Lenovo A7020a48 using Thailand Forum - Thaivisa mobile app

[FritsSikkink]

47 minutes ago, Bluespunk said:

Not true. 

Truth hurts sometime

[Bluespunk]

 

6 minutes ago, FritsSikkink said:

Truth hurts sometime

Not as much as falsehood

 

I’m not American by the way, but my degree covered this period of modern history...

[lovelomsak]

So what if other nations do not co operate . That is a plus. If no one trades with America it will have to get organized and get back to work.If America cannot get cheap Asian labour  imports and has stopped illegal immgrants. Americans will rebuild and be stronger than ever. If given no choice America will rebuild and be stronger than ever. Just like after the last world war. Just this time lives where not lost. Out of necessity things will change and there will be growth. A phoenix sort of thing.

  I am Canadian it will hurt for the short term but will benefit us  in the long run.

Edited June 2, 2018 by lovelomsak

[Jingthing]

So what if other nations do not co operate . That is a plus. If no one trades with America it will have to get organized and get back to work.If America cannot get cheap Asian labour  imports and has stopped illegal immgrants. Americans will rebuild and be stronger than ever. If given no choice America will rebuild and be stronger than ever. Just like after the last world war. Just this time lives where not lost. Out of necessity things will change and there will be growth. A phoenix sort of thing.
  I am Canadian it will hurt for the short term but will benefit us  in the long run.

You must be joking.

Sent from my Lenovo A7020a48 using Thailand Forum - Thaivisa mobile app

[tomacht8]

2 hours ago, buick said:

i understand it is difficult right now with trump.  i like many of his ideas but he hasn't carried them out in the best fashion starting from his inaugral address.  germany is not anywhere close to the status of canada, the UK, and france in terms of an ally (i'd add australia in there also).  i've heard this before (germany is a great ally of USA) and didn't like it much.  so this part of the article stood out to me.  just because it is the G7 doesn't make everyone there the 'closest allies' of the USA.  if you are from the UK and would like to reduce your 'ally' status for awhile, i understand.  you are welcome back any time.

Doesn't matter if you call them allies, closet allies or not allies today. Trump has pissed on almost every shoe. He is a bully who represents the ugly face of a big-mouthed American.

[ballpoint]

3 hours ago, dunroaming said:

The USA is a great country but it is being severely damaged by the poisonous so called president.

It's funny how one insect can damage so much grain.

 

John / Taupin.

[maximillian]

5 hours ago, buick said:

i'm an american and i like the idea of re-working the trade deals.  seems reasonable that they can be changed from time to time.  but i don't like the 'national security' claim which is being used to circumvent the 'normal' process (if there is a 'normal' process !!!).

 

i don't consider germany an ally of the USA as the article infers.  a big exporter to USA, yes, but an ally ?  not currently an enemy by any means, but i wouldn't group them in with 'closest allies'  as the article does:

 

 

Germany is not an ally of the US, it's a vassall, an occupied country that doesn't even have a chance to do anything that is against US or Israel's interests. And the present German government, even part of the opposition are deep in the anus of Uncle Sam. Obedient like a German Shepard and spineless like a slug.

[dunroaming]

2 hours ago, buick said:

i've heard this before (germany is a great ally of USA) and didn't like it much. 

The USA is an enormous market for Germany because of the motor trade alone.  Apart from their other exports   Mercedes, BMW, Audi and VW all sell extremely well.  So as far as trading is concerned Germany will consider the USA a close ally.