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

Councillor Gambell raises motion to fit busses with seat belts

The motion was passed on Tuesday’s council meeting

FormaShape snuffs small electrical fire

Fire department responds to fire in Lake Country for precautionary measures

Melcor Developments supports YMCA Strong Kids with generous $9,000 donation

Local business raises funds to enrich community through YMCA services

Boil water notice extended into Kelowna’s northern boundary

City of Kelowna extends boil water notice to over 100 residences in northern boundary of Kelowna

Kelowna Memorial Cup committee visits 2019 tournament in Halifax

The committee wants to get a first-hand look at how the tournament is organzied

600 new campsites coming to provincial parks and recreation sites across B.C.

Tourism Minister announced half of the new spots to 13 most popular provincial parks

Raptors beat Bucks 105-99 to move within 1 game of NBA Finals

Leonard scores 35 as Toronto takes 3-2 series lead over Milwaukee

Okanagan housing builds hope for 52 homeless individuals

The 52 unit supported housing apartment officially opens in Vernon

Gardens plant hope for Okanagan residents who were once homeless

Turning Points, in collaberation with Briteland, bring square foot gardening to Blair Apartments

Bear spray culprit released from Penticton RCMP custody

The individual who sprayed the bear spray at Compass House on May 22 has been released

Municipalities protest after B.C. declares marijuana crops ‘farm use’

UBCM president seeks answers in letter to John Horgan government

RCMP set to patrol Okanagan lakes

Vernon-North Okanagan members will be on area waters helping keep boaters safe

Summerland students to raise voices in public speech competition

Public speaking component is included in high school English program

CMHC defends mortgage stress test changes amid calls for loosening rules

Uninsured borrowers must now show they could service their mortgage if rates rose two per cent

Most Read