U.S. Trade Is Trump's Main Focus at G-7 Gathering

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That led to threats of retaliation. European allies have urged Trump to reconsider. As of May 31, they've all expired, and the USA government decided not to renew them.

The Commerce Department said foreign production of steel and aluminum was driving down prices and hurting USA producers, creating a "national security threat".

According to a survey of US CEOs, many are scaling back their hiring and spending plans due to fears of a trade war.

"Canada and the European Union are joined in the fight, and their initial lists look notably similar to Mexico's initial trucking foray, penalizing cosmetics, manicure and pedicure products, felt tip pens, toilet paper, and hair products among dozens of others items produced in targeted congressional districts of influential House members", she said. But in an odd twist, American consumers could eventually pay less, especially for pork products.

Randall Schweller, a rare global relations scholar who supports Trump, said the death of the Soviet Union and the decline of Daesh (also known as ISIS) mean "the US doesn't need its allies like it used to". Canada dominates, supplying more than a quarter of all USA steel, aluminum and iron imports in 2016.


O'Neil said that even the non-agricultural goods that make up the EU, Canadian, and Mexican tariffs lists are created to send a message. The focus on pork also serves to make a political statement: According to Census Bureau data, 10 out of the top 15 states for pork exports to Mexico voted for Trump in the 2016 election. Steel exports to the USA also make up more than half of Mexican production.

Mexico imported about $1 billion worth of pork previous year. By comparison, China buys just $116 billion.

"Canada is a different country than Mexico, they have different problems and you know, he's believed that bilateral has always been better", Kudlow said of the president. "That system has broken for the last 20 years plus". The United States, Mexico and Canada agreed to NAFTA in the 1990s, and all three countries have worked to renegotiate the deal since Trump became president.

So far, only Canada and Mexico have done so.

Tariffs on cheese (and other products) coming in and on metals going out.


Countries that import US pig meat.

Expectations for a resolution of the trade row this week are low after finance leaders from the United States' G7 partners butted heads with U.S. Treasury Secretary Steven Mnuchin at a meeting last week in the Canadian resort town of Whistler, British Columbia.

"There will be frank and sometimes hard discussions around the G7 table, particularly with the U.S. president on tariffs", Trudeau told reporters. A negative judgment at the WTO could result in the US having to compensate aggrieved foreign producers or face broader retaliatory measures. Mexican negotiators say they won't consider splitting negotiations for a matter that should be covered under the North American Free Trade Agreement, a 1994 pact among the United States, Mexico and Canada.

For example, if automakers have to pay more for the steel used in cars, you'll see that effect when you visit your local dealer. Essentially, the report indicates, for every steel and aluminum job gained there will be 16 jobs lost in other industries throughout the rest of the nation's economy.


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