Canada hoping its tariff threat will prompt US back down

Canada’s government not ready to discuss support, potential bailout packages for Canadian businesses

Canada’s finance minister said Friday he is hopeful the threat of retaliation against U.S. trade measures will persuade the Trump administration to back away from the steel and aluminum tariffs it has imposed on its G7 allies.

The tariffs have landed just as Finance Minister Bill Morneau presides over a meeting of finance ministers from the G7 industrial nations at which the event’s pre-set agenda has been overtaken by fears of a trade war.

Morneau said Canada’s government isn’t ready to discuss support or potential bailout packages for Canadian business sectors affected by the tariffs. He said the focus now is to use the threat of retaliatory measures to pressure the U.S. into reconsidering its own tariffs before any negative economic impact actually materializes.

Canada’s retaliatory tariffs don’t go into effect until July, which in theory leaves plenty of time for U.S. President Donald Trump to reconsider his position.

“We see that response as being a way to get us back to the table so the impacts actually don’t happen,” Morneau said.

Canada isn’t alone in its fight: The U.S. measures also struck other G7 nations — and those partners have returned fire with potential tariffs of their own.

The European Union is also planning a tariff counter strike and filed a request Friday for consultations with the World Trade Organization.

Bruno Le Maire, France’s economy and finance minister, said a G7 trade war should be avoided.

“On trade, this is a G6 plus one,” Le Maire said after stepping outside briefly from the talks. “We have been attacked by those tariffs. We do not have any other choice but to respond. We would have preferred not to take that kind of decision.”

Le Maire said U.S. Treasury Secretary Steven Mnuchin wasn’t surprised when confronted about the tariffs inside the talks. The French official expressed hope that the discussion will lay the foundation for successful talks during next week’s summit of G7 national leaders in Quebec’s Charlevoix region.

“We think that the G7 (meetings) will be useful if at the end of the G7, the United States is aware of the possible negative consequences of their decision on the unity of the G7 — not only the economic unity, but also the political one,” Le Maire said.

Trump has said the tariffs are needed to protect U.S. steel and aluminum industries vital to the nation’s security.

Morneau has called that “absurd” because Canada is no security risk to the U.S., and he warned the tariffs will destroy jobs on both sides of the border.

He said he used a private, bilateral meeting Thursday in Whistler to personally deliver that message to Mnuchin. Morneau declined to share details about how Canada’s argument was received, but he predicted some sparks would fly during the talks.

“Clearly, that is going to be a difficult discussion,” he said.

The Associated Press

Just Posted

Residents give peace a chance in Salmon Arm’s Marine Park

On International Day of Peace, public gathers at site dedicated to peace and understanding

Driver flees Chase RCMP, greeted by waiting officers in driveway near Salmon Arm

Police say man behind wheel without insurance and prohibited from driving in B.C.

Justice rules police did not coerce statement from Sagmoen

Defence had been seeking to have Curtis Sagmoen’s video interview with police deemed inadmissible

CSRD halts plan to fund non-profits in South Shuswap

Directors say misinformation was widespread as voters rejected funding proposal

Okanagan and Shuswap blossom at Communities in Bloom awards

District of Sicamous, City of Armstrong double winners at B.C. awards gala; Lumby also a winner

Psych assessment ordered for former West Kelowna teacher charged with child luring

Former West Kelowna teacher to undergo pre-sentence hearing next month

Woman arrested after allegedly attacking Vernon business owner

Things escalated after the woman was asked to leave her bag at the door

Sicamous Eagles cap off road trip with win in Nelson

Victory follows losses in Spokane and the Beaver Valley

‘This is savage’: Strip club owner suspects arson in Williams Lake fire

Investigators on scene to determine cause of fire that destroyed at least two businesses

B.C. VIEWS: School officials join fact-free ‘climate strike’

Students, public get distorted picture of greenhouse gases

EDITORIAL: No the prime minister is not a racist, move on

Let’s be very clear about this. Prime Minister Justin Trudeau is not… Continue reading

Firefighters may be needed for paramedic apartment access, experts say

Better coordination recommended in urban B.C. 9-1-1 calls

Silverbacks pass rookie on to West Kelowna Warriors

The forward one goal in three games this season

Most Read