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Canada hits back on U.S. tariffs; Mnuchin denies Trump wants to quit WTO


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Canada hits back on U.S. tariffs; Mnuchin denies Trump wants to quit WTO

By David Ljunggren and David Shepardson

 

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FILE PHOTO: Canadian Foreign Minister Chrystia Freeland gestures during a joint news conference on the closing of the seventh round of NAFTA talks in Mexico City, Mexico, March 5, 2018. REUTERS/Edgard Garrido/File Photo

 

OTTAWA/WASHINGTON (Reuters) - Canada struck back at the Trump administration on Friday over U.S. steel and aluminum tariffs, vowing to impose punitive measures on C$16.6 billion ($12.63 billion) worth of American goods until Washington relents.

 

The retaliation came as General Motors Co warned that any tariffs Washington might impose on imported vehicles could cost U.S jobs, and as Treasury Secretary Steve Mnuchin denied a report that President Donald Trump wanted to withdraw from the World Trade Organization.

 

Rising trade tension between Canada and the United States and a pushback from U.S. businesses on further tariffs, including on imported autos, pressured a White House that has championed an "America First" protectionist stance since Trump took office in January 2017.

 

Mnuchin lashed out against a report by the Axios news website that said Trump frequently told advisers he wanted the United States to quit the WTO, a move that could devastate global commerce. The report cited people involved in discussions with the president.

 

"This is an exaggeration," Mnuchin said. "The president has been clear ... he has concerns about the WTO, he thinks there's aspects of it that are not fair, he thinks that China and others have used it to their own advantage, but we are focused on free trade. That's what we're focused on - breaking down barriers."

 

Canada's retaliatory tariffs, effective on July 1, largely target U.S. steel and aluminum products, along with foodstuffs such as coffee, ketchup and whisky, according to a list released by Canada's Finance Department.

 

"We will not escalate and we will not back down," Canadian Foreign Minister Chrystia Freeland told reporters at a Stelco Holdings Inc plant in the steel city of Hamilton, Ontario.

 

The measures are designed to pressure Trump by focusing on goods from states where his Republican party is fighting to hold Congressional seats in the November miterm elections. They were announced just as America's largest automaker warned that overly broad tariffs could isolate U.S. businesses and cut jobs.

 

The Trump administration in May launched an investigation into whether imported vehicles posed a national security threat. Trump has repeatedly threatened a 20 percent import tariff on vehicles.

 

In comments filed with the U.S. Commerce Department, GM said expansive tariffs could "lead to a smaller GM, a reduced presence at home and abroad for this iconic American company, and risk less — not more — U.S. jobs."

 

GM, which makes many vehicles for the U.S. market in Mexico and Canada, said the tariffs could hike vehicle prices and reduce sales.

 

Even if automakers opted not to pass along higher costs to consumers, "this could still lead to less investment, fewer jobs, and lower wages for our employees. The carry-on effect of less investment and a smaller workforce could delay breakthrough technologies," GM said.

 

Canada's Freeland called the idea of auto tariffs "absolutely absurd." U.S. officials have linked the tariffs to slow progress in talks to modernize the North American Free Trade Agreement, which Trump says is a disaster and must be changed.

 

($1=1.3141 Canadian dollars)

 

 
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-- © Copyright Reuters 2018-06-30
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2 hours ago, habanero said:

Wow! Ketchup? That's going to hurt.

 

Not inconceivable that Kraft Heinz will have something to say if others follow canadas path.

The tomatoes that go into ketchup.

Usa is the 3rd biggest tomatoe grower in the world with china biggest.

Could be nice little earner for somewhere if don the dodger keeps fouling in his own sandpit

In answer ...wow that could hurt

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37 minutes ago, Tug said:

Yup Donald you are really something (not) hope he eats 1 cheeseburger to many soon!

 

37 minutes ago, Tug said:

Yup Donald you are really something (not) hope he eats 1 cheeseburger to many soon!

Love it! I've been wishing that he doubles down on greasy "double cheeseburgers" ASAP. Complete with a large side order of extra greasy fries with lots of salt.

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2 hours ago, pegman said:

The Americans have a trade surplus with Canada and Draft Dodger Don hits us with tariffs. Ok Draft Dodger Don, it's on. Time for us to our game. The USA needs our lumber right now for the rebuilding in Texas and pent up demand from the Bush near depression. Let's put a 45% export tax on softwood lumber on top of his tariffs. Those great Republican Koch brothers have the biggest forign leases in the tar sands. They send the heavy oil to their Texas refineries and make out like bandits at both ends. Let's hit unrefined oil to the USA with a 30% export tax and see how they react. Boycott America starts Canada Day July 1. 

https://ustr.gov/countries-regions/americas/canada

Since most houses in Texas including my own are brick and mortar. Not sure what your getting at.

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5 hours ago, samran said:

You can be sure the Heinz’s bottling plant is in the reddest of red districts. These relaliatory tariffs by Canada, EU and China are all designed to target GOP strongholds on a seat by seat basis. 

 

The trump cabinet on the other hand, are flat out finding Canada on a map, let alone their real enemies. 

You do realize that Heinz is owned by John 

Kerry's wife? They live in

Boston, Mass. It

 doesn't get any more blue than that. 

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6 hours ago, neeray said:

Every drop counts. Ketchup is rarely on sale but today I saw the Canadian brand on sale for 25% less. When shopping, I saw shoppers reading labels, some friendly chat supported what I suspected. They were making certain that they bought Canadian products whenever possible. Me too! Canada is only 1/10 the population of America but the majority of their states depend on Canada for trade. By not purchasing American, at least we feel proactive plus it has to hurt to some degree.

When America sneezes, Canada catches a cold. As a Canadian business owner, I assure you, we already have a very bad cold (since early March when trump first started threatening tariffs).

Besides, our Canadian-made Ketchup tastes better anyway.

Yes, but you import toilet paper from the U.S. Guess your no longer going to buy that either?

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9 hours ago, bluesofa said:

Especially if it's still in the bottle when it hits you...

 

Unfortunately they are in plastic bottles these day's. :sad:

 

Though a well aimed one , week Friday, could make a lot more mess of his suit than a rotten tomato... :coffee1:

Edited by Basil B
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3 hours ago, pegman said:

The Americans have a trade surplus with Canada and Draft Dodger Don hits us with tariffs. Ok Draft Dodger Don, it's on. Time for us to our game. The USA needs our lumber right now for the rebuilding in Texas and pent up demand from the Bush near depression. Let's put a 45% export tax on softwood lumber on top of his tariffs. Those great Republican Koch brothers have the biggest forign leases in the tar sands. They send the heavy oil to their Texas refineries and make out like bandits at both ends. Let's hit unrefined oil to the USA with a 30% export tax and see how they react. Boycott America starts Canada Day July 1. 

https://ustr.gov/countries-regions/americas/canada

Could also hit them Yankee gold miners up in the Klondike with punitive taxes, plus stricter environmental and safety controls, Parker Schnabel will be pleased, and a 100% import tax on Caterpillar & Bobcat.

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5 hours ago, Srikcir said:

Having "concerns" is nothing but unclear.

This president thrives on being "unclear". It allows him more latitude to change his story, his mind, his position, to create new lies to cover up old lies.

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2 hours ago, habanero said:

Are you under the impression that there are no lumber mills in the States?

 

 

 

 

"About a third of the softwood timber available in the United States comes from Canadian forests."

https://www.vox.com/policy-and-politics/2017/4/25/15419854/trump-canada-lumber-trade-war

Edited by bristolboy
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1 hour ago, habanero said:

Are you under the impression that there are no lumber mills in the States?

No, that is not my impression.

Your question really makes no sense to the conversation. Another ridicule device?

 

I am under the impression that Canada is a major exporter of softwood lumber products to the US. Clearly, there is a demand in the US for Canadian softwood lumber products, remanufactured products and home lumber products contained in single family home packages irrespective of how many lumber mills there are in the US. 

Also clearly your remark about "brick and mortar" to Pegman was a deflection if not obfuscation to the underlying issue of pricing imported Canadian softwood lumber products for the US market.

 

Canada uses different economic systems in pricing its exported softwood lumber products than do US softwood lumber product manufacturers. There needs after several years of trade dispute and after an expired US-Canada Agreement of 2006 to be a renegotiated trade agreement for US import of Canadian softwood lumber products. But Trump doesn't do prolonged negotiations. He wants a quick "win" for his base to show he is protecting America's national security. So he unilaterally goes nuclear with an extreme tariff and perhaps unexpectedly, Canada responds in kind rather than being intimidated.

 

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Canada Gives Trudeau a Trump Bump After G-7 Spat

In the latest Nanos weekly-tracking poll, published June 26, the Liberals opened up a five-point lead over the Tories, holding on to 37% support.

“The reality is whenever the Liberal government has been focused on its domestic agenda, the numbers have floated around a lot,“ said Mr. Nanos. ”But when it comes to advancing Canadian interests with the U.S., for the Liberals it’s a clear win for Justin Trudeau.”

https://www.wsj.com/articles/canada-gives-trudeau-a-trump-bump-after-g-7-spat-1530273600?mod=hp_major_pos2

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