China offers to buy US$70b in US goods

Cecilia Malmstrom the European Union’s Trade Commissioner

Cecilia Malmstrom the European Union’s Trade Commissioner

Mexico announced steep duties Tuesday on a raft of USA products ranging from whiskey to apples in retaliation for the "unilateral adoption" by Washington of steel and aluminium tariffs.

The US tariffs have been condemned by nations across the world, with Canada last week announcing it will impose tariffs on as much as C$16.6 billion (NZ$18.2 billion) of US steel, aluminium and other products from July 1.

The Mexican economy ministry published a list of American products that will be subject to duties of between 15 and 25 per cent, including pork, cheese and grapes. Former Senate Majority Leader Harry Reid regularly attacked Republicans for what he called a "Koch addiction".

The network, which could make a difference in some of the states that could tip the balance of power on Capitol Hill, plans to spend roughly $400 million on state and federal policy and politics during the two-year election cycle that culminates with the November balloting.

"We need trade and one of the things we're concerned about is long-term implications that these trade issues will have on our partnerships with Mexico and Canada and other markets", said Iowa Secretary of Agriculture Mike Naig, a Republican.

"It certainly casts a negative pall over the market", said CME livestock futures trader Dan Norcini.

President Xi Jinping's government has started to quantify its commitment to import more USA products as trade talks between the two nations progress, said the people, who spoke on condition of anonymity because the negotiations aren't public. "This is devastating to my family and pork producing families across the United States".

Those tariffs won't take effect until July 1 - the hope being that lobbying efforts by Canada and USA business interests might convince Trump to change his mind.

For example, since 2001, free trade with China has cost millions of Americans their jobs.

The U.S. had a $17.5 billion goods deficit with Canada in 2017 and - when services are included in the measurement - an overall surplus of $8.4 billion with Canada in 2017, according to the Trade Representative's office. However, the Mexican economy relies more on trade than does the USA economy, with about 80 percent of its exports sold to America.

The coalition also wants Canada to inject $500 million in new money towards the initiative.

The Kochs, who have channeled billions of dollars into conservative causes, kept their distance from Trump during the 2016 presidential election.

Martin was among the guests invited to that meeting, and while he said conflicts between G7 partners are hardly unusual, they're rarely as dramatic and headline-grabbing as the one that has erupted over Trump's decision to target long-standing allies with tariffs by citing alleged threats to "national security". Last week Washington said it was ending a two-month exemption it had granted to imports from Canada, Mexico and the European Union.

Still, Lovely said it's possible that the United States can craft a separate agreement with Canada.

Officials from Canada, the US and other G7 members, including the European Union, were working behind the scenes to craft consensus on at least some of Trudeau's agenda.

Apparently, the U.S. president hasn't had time for a briefing on the fate of the world's most important bilateral trade relationship yet.

"He's still deciding on what to do about Canada", said one senior administration official on the President's response to the request for leniency.

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