Canadian Prime Minister Justin Trudeau is "overreacting" to steel and aluminum tariffs imposed by President Donald Trump last week because he misunderstands the chief executive's reasoning, U.S. National Economic Council Director Larry Kudlow said Sunday on Fox News' "Fox News Sunday".
Tariffs of 25 per cent on imported steel and 10 per cent on aluminium are now in place against the EU, Canada and Mexico.
In Canada, Trudeau announced what he called "directly reciprocal" tariffs targeting US products like steel and toilet paper.
While the tariffs being higher than expected could certainly have ramifications for United States businesses, experts say they would be permitted under worldwide law.
Trump, meanwhile, broadened his trade tirades on Twitter into agriculture, writing: "Canada has all sorts of trade barriers on our Agricultural products".
"We're aware that we have to work collectively and collaboratively with the United States and that, quite frankly, has been my point with the president since the very beginning", Trudeau said.
The world remained on the brink of a trade war today after China warned the United States against imposing new tariffs as talks between top officials did not end yield progress, while major USA allies bristled at being hit by protectionist measures.More news: Donald Trump Isn't King: Watergate Prosecutor, Dems Say President Can Obstruct Justice
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In an interview that aired on "Meet the Press" on Friday, Trudeau slammed the claim that the new tariffs will enhance US national security.
In a rare show of division among the normally harmonious club of wealthy nations, the six other G7 member countries issued a statement asking U.S. Treasury Secretary Steven Mnuchin to convey their "unanimous concern and disappointment" about the tariffs to President Donald Trump.
He has pushed for China to open its markets more to USA agricultural exports, which would give Trump a win to brag about and likely boost his chances of winning farm states like Iowa in the 2020 election.
Mnuchin faced an earful of complaints at the meeting as G7 officials vocalized frustration over the USA action, which was seen as alienating historical trading partners.
The three groups launching the campaign: Freedom Partners Chamber of Commerce, Americans for Prosperity and the LIBRE Initiative, are urging the president to lift the recent tariffs on aluminium and steel imports as well as the proposed tariffs on other imports from China.
The statement, written by Canada, also called for "decisive action" to resolve the tariff dispute at a G7 leaders' summit starting on Friday in Charlevoix, Quebec. "But the message we've been saying to everyone watching is that we'll always be there for the workers".
The European Union has responded to the U.S. move with its own list of tariffs on American goods ranging from Harley-Davidson motorcycles to bourbon.
The list of USA agricultural products, almost all of which will be subject to taxes of 15 percent to 25 percent, also includes Tennessee or bourbon whiskey and cranberries.