Trump Aide: Canada Trade Row a "family Quarrel", Trudeau Overreacting

Allies in G7 vow to fight US tariffs see threat to growth

Trump Aide: Canada Trade Row a "family Quarrel", Trudeau Overreacting

Initially announced in March, the levies took effect Friday.

The president justified the action by citing Section 232 law, a rarely invoked law that allows tariffs to be placed on a country in the interest of national security.

Trudeau said in his "Meet the Press" interview, which aired Sunday. And in this case, on trade, the United States is an outlier.

"The idea that we are somehow a national security threat to the United States is, quite frankly, insulting and unacceptable", Trudeau said.

White House economic adviser Larry Kudlow said on Sunday that the US trade dispute with Canada is a "family quarrel", and brushed aside concerns expressed by Canadian Prime Minister Justin Trudeau. He claimed the meeting was not at all a G6-plus-1 meeting like many have said it was.

He further said that the retaliatory tariffs would only be applied to United States goods and would come into effect from July 1. And they asked the U.S. Treasury Secretary to convey that to President Trump.

He added that US President Donald Trump's move will apart from hurting Canadian jobs will also have an adverse affect on US jobs as well.

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Other allies have denounced the tariffs in similarly harsh terms.

"Economic nationalism leads to war", he warned.

Freeland said Canada's reciprocal tariffs, outlined last week, were "the strongest trade action Canada has taken since the second world war".

One Canadian insider said traditionally, Canada was too small for retaliatory trade action against the U.S.to have an impact, but Trump has gone after so many countries at once that the pushback globally is big enough to have an impact on the American economy. The tariffs are unusual because they target some of America's closest allies.

Chrystia Freeland made the comments to CNN's Dana Bash on "State of the Union" Sunday after a week of heightened trade tensions.

That summit, which will be hosted by Prime Minister Justin Trudeau, will also mark Trump's first visit to Canada as president.

Secretary Ross and the White House emphasized that moving forward the administration is willing to be flexible and is committed to "good-faith" negotiations.

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Trump's economic adviser, Larry Kudlow, responded Sunday, saying he thinks Trudeau is "overreacting".

Morneau has said Ottawa is buying the project from Kinder Morgan Canada in order to help the expansion overcome political risks.

Washington says it will hit Canada with tariffs on steel and aluminum. "I think they ought to make it very clear that they're not going to just sit back and tolerate this".

The 10 per cent tariffs or similar measures on selected US imports are set to take effect July 1 after an industry consultation period.

Still, some American lawmakers have the same fear about its trade war with China.

"What companies is going to want to invest in Canada if five years later there might not be a trade deal with the United States?" he said.

However, readily available Canadian substitutes for these USA goods could get a boost as result, said Joanne McNeish, an associate professor at the Ted Rogers School of Management at Ryerson University.

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