Canada hoping its tariff threat will prompt US back down

Canada’s government not ready to discuss support, potential bailout packages for Canadian businesses

Canada’s finance minister said Friday he is hopeful the threat of retaliation against U.S. trade measures will persuade the Trump administration to back away from the steel and aluminum tariffs it has imposed on its G7 allies.

The tariffs have landed just as Finance Minister Bill Morneau presides over a meeting of finance ministers from the G7 industrial nations at which the event’s pre-set agenda has been overtaken by fears of a trade war.

Morneau said Canada’s government isn’t ready to discuss support or potential bailout packages for Canadian business sectors affected by the tariffs. He said the focus now is to use the threat of retaliatory measures to pressure the U.S. into reconsidering its own tariffs before any negative economic impact actually materializes.

Canada’s retaliatory tariffs don’t go into effect until July, which in theory leaves plenty of time for U.S. President Donald Trump to reconsider his position.

“We see that response as being a way to get us back to the table so the impacts actually don’t happen,” Morneau said.

Canada isn’t alone in its fight: The U.S. measures also struck other G7 nations — and those partners have returned fire with potential tariffs of their own.

The European Union is also planning a tariff counter strike and filed a request Friday for consultations with the World Trade Organization.

Bruno Le Maire, France’s economy and finance minister, said a G7 trade war should be avoided.

“On trade, this is a G6 plus one,” Le Maire said after stepping outside briefly from the talks. “We have been attacked by those tariffs. We do not have any other choice but to respond. We would have preferred not to take that kind of decision.”

Le Maire said U.S. Treasury Secretary Steven Mnuchin wasn’t surprised when confronted about the tariffs inside the talks. The French official expressed hope that the discussion will lay the foundation for successful talks during next week’s summit of G7 national leaders in Quebec’s Charlevoix region.

“We think that the G7 (meetings) will be useful if at the end of the G7, the United States is aware of the possible negative consequences of their decision on the unity of the G7 — not only the economic unity, but also the political one,” Le Maire said.

Trump has said the tariffs are needed to protect U.S. steel and aluminum industries vital to the nation’s security.

Morneau has called that “absurd” because Canada is no security risk to the U.S., and he warned the tariffs will destroy jobs on both sides of the border.

He said he used a private, bilateral meeting Thursday in Whistler to personally deliver that message to Mnuchin. Morneau declined to share details about how Canada’s argument was received, but he predicted some sparks would fly during the talks.

“Clearly, that is going to be a difficult discussion,” he said.

The Associated Press

Just Posted

The Red Deer Home Renovation & Design Show runs through to Sunday at Westerner Park

Lots of ideas for fall renovation, decor, design, organization, construction and indoor living projects

Red Deer RCMP investigate second failed ATM theft attempt

This is the second attempt to steal the ATM from Eastview IGA in less than a week

Get your scare on at the annual Zed Haunted House

The haunted house opens tonight at 6833 66th St.

Singer k.d. lang receives Alberta’s highest honour

Celebrated singer-songwriter k.d. lang received the Alberta Order of Excellence in Edmonton

‘Mom, I’m in trouble:’ Canadian faces 10 years for alleged graffiti

Brittney Schneider, another tourist caught spraying message on walls of Tha Pae Gate in Thailand

Feds consulting on national anti-racism strategy behind closed doors

Heritage Minister Pablo Rodriguez says people still face systemic racism in some communities

Pot sales down by nearly 70% on Day 2 of legalization in B.C.

Several products on BC Cannabis Store are still sold out

Colourfully named cannabis products appeal to youth, Tory health critic says

Conservative health critic Marilyn Gladu says the Liberal government needs to do more to ensure cannabis products available online are not enticing to young people

B.C. high school teacher faces sexual assault charges

A Mt. Boucherie teacher has been charged with child luring, sexual exploitation and sexual assault.

Fashion Fridays: You can never have enough shoes

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Migrants, police mass in town on Guatemala-Mexico border

Many of the more than 2,000 Hondurans in a migrant caravan trying to wend its way to the United States left spontaneously with little more than the clothes on their backs and what they could quickly throw into backpacks.

Trump: ‘Severe’ consequences if Saudis murdered Khashoggi

Pro-government newspaper Yeni Safak on Wednesday said it had obtained audio recordings of the alleged killing of Saudi writer Jamal Khashoggi inside the Saudi Arabia’s consulate in Istanbul on Oct. 2.

Most Read