USA isolated at G-7 meeting as tariffs prompt retaliation

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Speaking to BBC Radio 4's Today programme, Mr Lange said he would like to see tariffs imposed on "symbolic" USA products such as Harley-Davidson motorcycles.

"NAFTA needs updating", he said, "but tearing it up is not the answer".

U.S. President Donald Trump's decision to hit Canada - as well as Mexico and the European Union - was reported by the Washington Post on Wednesday, and confirmed to The Globe and Mail by a senior Canadian official and a U.S. industry source.

The White House released a statement from Trump on Thursday night saying of NAFTA, "Earlier today, this message was conveyed to Prime Minister Justin Trudeau of Canada: The United State (sic) will agree to a fair deal, or there will be no deal at all". Then again, at May-end, Washington announced a 25% tariff on $50 billion worth of goods from China and imposed new limits on Chinese investments in the United States (read: Trump, Tariff & Geopolitics Lead May: 10 Top ETF Stories).

Udall's speech came at the Sheraton Albuquerque Airport Hotel.

Mexico complained that the tariffs will "distort global trade" and said it will penalize US imports including pork, apples, grapes, cheeses and flat steel.

Officials at the G7 meeting said the tariffs made it more hard for the group to work together to confront China's trade practices, especially when Beijing, like most G7 members, supports the current World Trade Organization-based trade rules and the USA is seeking to go around them.

It also fears steel exported to the United States from other countries could be redirected to Europe on account of the tariffs. The US, Canada and Mexico trade more than a trillion dollars in goods annually.

Trudeau says NAFTA talks broke down after Pence made ultimatum
Commenting on the exchange, commissioner for trade Cecilia Malmström said: "Today is a bad day for world trade". France's finance minister, Bruno Le Maire, called the USA tariffs "unjustified, unjustifiable and risky ".

The Commission has said the European Union will set duties on 2.8 billion euros ($3.4 billion) of US exports, including peanut butter and denim jeans, if its metals exports to the United States worth 6.4 billion euros ($7.5 billion) are subject to tariffs.

US Treasury Secretary Steven Mnuchin was clearly told that it is now up to the US to smooth things over and avoid a trade war, diplomats said after the meetings ahead of the main G7 summit in Canada next week. But those negotiations have so far failed to result in a deal.

Ross also said the European Union was unwilling to speak about renegotiating trade deals until the Trump administration threatened them with tariffs.

But Vice President Mike Pence called back this week to set a NAFTA sunset clause as a precondition for the meeting, which both Canada and Mexico had rejected.

The US tariffs coincide with - and could complicate - the Trump administration's separate fight over Beijing's strong-arm tactics to overtake US technological supremacy.

President Trump on Thursday, May 31 imposed tariffs on imported steel and aluminum from the European Union, Canada and Mexico, triggering immediate retaliation from US allies and protests from American businesses and farmers. We do not have any other choice but to respond.

The Trudeau government has planned to invest an extra $62 billion in new military equipment over the next 20 years through its new defence policy, and Qualtrough said that money includes contingency funds for unexpected events.