Canada's Justin Trudeau says NAFTA talks broke down after Pence made ultimatum

Canada's Justin Trudeau says NAFTA talks broke down after Pence made ultimatum

On Thursday, the United States announced tariffs on steel and aluminum imports from Canada, Mexico, and the European Union.

Ross spoke with top European Union officials in Paris Wednesday as part of a two-day meeting.

Some countries - including Argentina, Australia, Brazil and South Korea - agreed to restrict exports of metals and were exempted, but Ross said the EU, Canada and Mexico were not there yet.

A press release from Canadian Chamber president Perrin Beatty stated that "We need to act vigorously to support our domestic industries, and to send a message to the U.S. Administration that their unilateral protectionist measure will not come without a serious cost to them".

"These problems are much more urgent than quarterly meetings with no real, factual result", he explained.

'Because you're talking about a very different two countries. Ross denied this impression and said that there has been transshipment of Chinese steel and aluminum.

The American government announced on Thursday morning that it will impose tariffs on Canadian steel and aluminum imports, which were effective as of midnight with a 25% tariff on steel and a 10% tariff on aluminum. U.S. Steel climbed 3%.

The UK's Secretary of State for International Trade Liam Fox told Sky News it, too, is considering retaliatory measures and joining the EU's complaint with the WTO.

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"This is $16.6 billion of retaliation", said Canada's Foreign Affairs Minister Chrystia Freeland on Thursday. "That United States has been taken advantage of for many decades on trade".

Canada, the largest supplier of steel to the United States, will impose retaliatory tariffs covering $C16.6 billion in imports from the U, including whiskey, orange juice, steel, aluminium and other products, Canadian Foreign Minister Chrystia Freeland said. The EU also started the process of filing a complaint with the World Trade Organization.

Trump had campaigned for president on a promise to crack down on trading partners that he said exploited poorly negotiated trade agreements to run up big trade surpluses with the US.

The NAFTA talks were one factor in the administration's decision to grant exemptions to Canada and Mexico from the steel and aluminum tariffs. Mexico's Ministry of Economy went on to say "Mexico reiterates its openness to constructive dialogue with the U.S., its support for the worldwide trading system and its rejection of unilateral protectionist measures".

Canadian Prime Minister Justin Trudeau said Thursday that he'd offered to go to Washington this week to complete the talks, thinking they were close to an agreement, but that Vice President Mike Pence called him and told him a meeting with the USA president would only happen if Trudeau agreed to put a five-year sunset clause into the deal.

Canadian Prime Minister Justin Trudeau called the move "totally unacceptable", while in London a spokesperson for Theresa May said the British government was "deeply disappointed".

But in targeting its own allies, the USA tariffs will widen a rift with normally friendly trading partners, and the likely result of actions and counteractions is likely to be higher costs and reduced access to key goods and materials. "We continue to work closely with our European Union partners and will consider carefully the EU's proposals in response".

But she says they could hit Canadian businesses, some of which say they are watching closely to see how the dispute unfolds.

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