Trump floats replacing NAFTA with bilateral agreements with Canada, Mexico

Canada's Trudeau blasts

EU initiates dispute with US at WTO

Regarding the dispute with the United States, the EU says in a document submitted to the WTO that USA tariff measures "adversely affect exports of these goods from the European Union to the United States".

Macron's office said in a statement Friday that the two presidents spoke by phone after Trump's administration announced the decision Thursday to impose 25 per cent tariffs on steel and 10 per cent tariffs on aluminum.

Meanwhile, the European Union on Friday lodged an official complaint with the WTO over Trump's "unfair" trade tariffs.

Canada had earlier announced retaliatory tariffs on a range of U.S. imports, including maple syrup and ballpoint pens.

Trade Commissioner Cecilia Malmstrom added that the USA, through months of negotiations, threatened steep tariffs in order to obtain trade concessions from the EU.

Economists say the standoff with the European Union could tip towards a trade war, particularly after Trump last week launched another national security investigation into auto and truck imports that could lead to new US tariffs.

The U.S. plan has raised the threat of retaliation from Europe and fears of a global trade war - a prospect that is already weighing on investor confidence and could hinder the global economic upturn.

Canada plans to slam retaliatory tariffs on $12.8 billion worth of US exports and contest the steel and aluminum tariffs under the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO), per Reuters.

The other six G-7 member countries asked Mnuchin to bring to President Donald Trump "a message of regret and disappointment" over the tariffs, Canadian Finance Minister Bill Morneau said at a press conference after the end of a three-day meeting in the Canadian mountain resort town of Whistler, British Columbia.

Late Thursday, President Donald Trump said in a statement it was made clear to Trudeau that the United States "will agree to a fair deal, or there will be no deal at all". "That's not going to happen", said EU Commission President Jean-Claude Juncker. US tariffs on European steel and aluminum imports are expected after Trump administration's failure to win concessions from EU.

The Mexican government said it would levy import taxes on USA exports of pork bellies, apples, cranberries, grapes, certain cheeses and various types of steel.

Europe is the biggest exporter of steel to the United States, accounting for almost 5 million tonnes out of total USA imports of about 35 million tonnes a year.

She calls the USA measures illegal and counterproductive.

"This is not the way we do business, and certainly not between longstanding partners, friends and allies", EU Commissioner for Trade Cecilia Malmström said.

Tariffs on steel imports to the US can help local producers of the metal by making foreign products more expensive. We do not have any other choice but to respond. "The government is absolutely prepared to and will defend Canadian industries and Canadian jobs". I want fair trade.

NAFTA negotiations are deadlocked over tough protectionist demands from the United States.

"It's not that you can't talk just because there are tariffs", Ross said in Paris at the Organization for Economic Cooperation and Development.

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