Trump, Trudeau tariff phone call gets testy after War of 1812 mention

U.S. President Trump greets Canadian Prime Minister Trudeau at the White House in Washington

They'll hike the price of products including pork, apples, potatoes, bourbon as well as different types of cheese.

In response Canada implemented retaliatory tariffs on US goods.

Mexico promised retaliatory measures after the US announced it would go forward with its plan to impose steel and aluminum tariffs.

The tariffs imposed Tuesday will affect just more than 1% of USA exports to Mexico.

The reaction of the EU, Canada and Mexico raises the possibility the U.S.is facing down a full-blown trade war - even as it does the same with China.

Mexico announced the levies this week in retaliation to Trump's decision to slap tariffs on metal imports from Mexico and other countries.

With midterm elections looming, the tariffs are crafted to affect states and regions of the country where Republican politicians appear most vulnerable.

In February, talking about "countries that take advantage of the United States", he said, "Some of them are our so-called allies, but they're not allies on trade".

Trump mentioned the idea on Friday following a meeting with an official from South Korea. The order stipulates charges of 15 percent to 25 percent on US farm goods including pork, cheese, apples and potatoes, bourbon whiskey and cranberries. But growers will look for other export markets to make up for lost sales to Mexico.

Other Trump critics suspect the direct or indirect influence of Russian President Vladimir Putin, whose interests are served by discord between the US and allies.

"The toll on rural America from escalating trade disputes with critically important trade partners is mounting", he wrote in a statement.

The G7 groups Canada, the United States, Japan, Britain, Italy, France and Germany.

Mexico's actions are within the rules of the WTO and NAFTA, Mexican Economy Minister Ildefonso Guajardo told reporters on Tuesday. Those products include USA steel and aluminum as well as food an other agricultural products.

Canada has always been a close USA ally.

But the tariff is still a blow to an otherwise successful export season to Mexico. The House proposal goes as far as to single out China among a proposed group of hostile nations whose companies could undergo extra scrutiny for national security risks if they seek to buy stakes in U.S. corporations.

The biggest industry to take a hit from these tariffs will be steel-consuming sectors, many of which are in the Rust Belt and southern states.

"In no way is this [tariff list] publication revenge".

President Trump is trying to rewrite the terms and conditions of the worldwide order specifically with regard to trade, security, and global agreements and organisations, by "leveraging the dollar, market access, and military advantages", said Dr Inderjeet Parmar professor of professor of global politics at the City, University of London.

If the United States removes its tariffs, Mexico will do the same, Baker added.

"A 20% tariff eliminates our ability to compete effectively in Mexico", said Jim Heimerl, the trade group's president and a pork producer from Johnstown, Ohio.

The change in negotiations from multilateral to bilateral could come swiftly.

When the steel tariffs were first proposed in March, the EU, Canada and Mexico all reacted by threatening to retaliate with their own sanctions against some of these products.

In Quebec, Trump is expected to have tense discussions with the leaders of key Western allies over trade and other issues.

French President Emmanuel Macron and Canadian Prime Minister Justin Trudeau expressed support for "strong multilateralism" in Ottawa Wednesday before the G7 summit, where US President Donald Trump's aggressive trade policies are sure to raise hackles.

Trump has previously admitted to making a claim to Trudeau that he wasn't sure was true, insisting that the US had a trade deficit with Canada.

The agreement governs trade between the US, Canada and Mexico.

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