Trudeau hits back at Trump tariffs, Kudlow says he's 'overreacting'

Donald Trump hints at new deal

Trump says 'wouldn't mind' scrapping Nafta for bilateral deals

White House economic advisor Larry Kudlow stated on the weekend that Canadian Prime Minister Justin Trudeau is "overreacting" to the ongoing NAFTA dispute that saw the USA impose hefty steel and aluminum tariffs on Canada and Mexico, as well as the European Union, late last week.

Trudeau responded on Thursday by calling the tariffs an affront to the longstanding security partnership between Canada and the United States, and Canada announced retaliatory steps.

Canada retaliated for the tariffs Thursday with $16.6 billion worth of "countermeasures" that hit a range of products from flat-rolled steel to playing cards, while Mexico also plans tariffs on a variety of USA products, including flat steel.

The metal tariffs imposed on the European Union and Canada are the latest escalation by the USA on the trade front that has roiled financial markets for months and prompted the International Monetary Fund to warn of a trade war that could undermine the broadest global upswing in years.

That meeting, which will be hosted by Canadian prime minister Justin Trudeau, will be Mr Trump's first visit to Canada as president.

The U.S., Canada and Mexico have been holding talks to renegotiate the deal.

Trudeau, in an interview aired on Sunday by NBC's "Meet the Press", said it was "insulting" to hear the USA claim that Canadian steel and aluminum posed a national security threat.

The dispute over US President Donald Trump's new levies on steel and aluminum imports is driving a wedge in the G7 group of industrial nations.

Freeland pointed out that the United States and Canada have "been working together for 150 years".

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Trudeau said the reciprocal tariffs would hurt both United States and Canadian workers and consumers.

Canada announced last week it will impose retaliatory tariffs on $12.8 billion worth of United States goods in response to Trump's metals tariffs. According to the Alabama Department of Commerce, Canadian companies have invested more than $2.5 billion in Alabama since 1999, creating an estimated 5,700 jobs.

Speaking separately after the meeting, frequently referred to as the "G6 plus one", Mnuchin told reporters that he was not part of the six-country consensus on trade and said Trump was focused on "rebalancing our trade relationships".

Following the conclusion of a three-day meeting of G7 finance ministers, Canadian Minister of Finance Bill Morneau issued a summary saying that the other six members want Trump to hear their message of "concern and disappointment" over the United States trade actions.

Trump and other G7 leaders meet next weekend in Quebec.

Le Maire said it's now up to the U.S.to take action to rebuild confidence among G7 members - and to avoid any escalation next week during the G7 leaders' summit. He exempted Canada, Mexico and the European Union pending additional talks to ease US concerns.

He said he used a private, bilateral meeting Thursday in Whistler to personally deliver that message to Mr Mnuchin.

Trudeau said he refused to go because of the "totally unacceptable" precondition.

The Business Roundtable wrote in a blog post on Thursday that "these tariffs and increased costs have already caused harm to USA businesses and workers", pointing to companies that have said the tariffs could force them to lay off employees to offset higher costs.

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