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

Hwy #2A north of Millet closed after crash

Leduc RCMP on scene of a motor vehicle collision

Wetaskiwin Leaders of Tomorrow youth awards kick-off

Nominations now open for Wetaskiwin youth leaders awards

Writer says government’s Bighorn campaign full of dishonesty

Bighorn plan is to destroy land, not protect it

County council hears cannabis info meeting not well attended

Councilors give regular updates on their work at meeting Nov. 6

2-for-1: Total lunar eclipse comes with supermoon bonus

On Sunday night, the moon, Earth and sun lined up to create the eclipse, which was visible throughout North and South America

Woman offers luxury Alberta home for just $25 and a flair for the written word

Alla Wagner ran into health problems, which forced her to list the 5,000-square-foot estate at market value

46% of Canadians $200 or less away from financial insolvency: poll

45% cent of those surveyed say they will need to go further into debt to pay their living and family expenses

World economy forecast to slow in 2019 amid trade tensions

For Canada, the IMF’s estimate for growth in 2019 was 1.9 per cent, down from expected global growth of 3.5 per cent

‘Gotti’ leads Razzie nominations, Trump up for worst actor

The nominations were announced on Monday, Jan. 21 with some movies earning up to six nominations

PHOTO: Eyes turn to heavens to witness super blood wolf moon

These two photos show the lunar eclipse about 30 minutes apart from each other.

Skaters stranded in Saint John, NB, amid storm on last day of championships

More than half of the flights out of the city’s airport were cancelled due to the weather

Call for tighter bail rules after Saudi sex-crime suspect vanishes

Mohammed Zuraibi Alzoabi was facing charges related to alleged sexual assault, criminal harassment, assault and forcible confinement of a woman

Most Read