Trump says he 'wouldn't mind' scrapping NAFTA

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Just a week ago, USA businesses may have thought they could breathe a sigh of relief, as the US and China hit pause on an impending trade war.

"This doesn't happen that often at G7 meetings, but it was the US against everyone else", Aso told reporters.

The EU will now take action against the USA at the World Trade Organisation, while imposing duties on American imports expected to include orange juice, peanut butter and other goods. "Ultimately, we will shift some production, there's no question and I think long term, it would be a disaster for Canada and the U.S".

"It's very complicated", says John Brew, a trade lawyer at Crowell & Moring LLP.

Earlier in the day, the prime minister called Trump's use of a national security clause in US trade law to justify the tariffs "totally unacceptable".

Bill Morneau, the Canadian finance minister.

Janzen says the steel and aluminum tariffs are a unique result of Trump policies whereas softwood lumber has been an irritant for several administrations of both political parties. At a minimum I want fair trade, ' he said.

Trudeau said Trump seemed agreeable before Pence called him on Tuesday.

The U.S. tariffs of 25 percent on imports of steel and 10 percent on aluminum were imposed early on Friday on Canada, Mexico and the European Union after they refused to accept steel and aluminum quotas in negotiations with U.S. Commerce Secretary Wilbur Ross.

Canada and Mexico, embroiled in talks with the United States to modernise the North American Free Trade Agreement (NAFTA), responded swiftly.

"President Trump has been very clear in wanting to address trade issues", Mnuchin said.

The Dow Jones Industrial Average and S&P 500 index rebounded from losses on Thursday to trade about 1 percent higher.

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He added Canada would challenge the "illegal" measures under North American Free Trade Agreement and the World Trade Organisation rules, and finished by taking a swipe at Trump's leadership style.

"It would be a great pity if we ended up in a tit-for-tat trade dispute with our closest allies".

A Commerce Department investigation earlier this year determined a need to ensure adequate USA steel production capacity to supply the military.

The tariff tit-for-tat has further complicated a hard and drawn-out NAFTA renegotiation process that has failed to reach resolution despite repeated claims from leaders and trade officials that progress is being made and a deal is not far off.

British Prime Minister Theresa May said she was "deeply disappointed at the unjustified decision" to apply the tariffs announced by the Department of Commerce.

According to Trudeau, Trump's tariffs will harm industries and workers on both sides of the Canada-U.S. border. According to estimates compiled by the Council on Foreign Relations, new vehicle prices in the US could climb by as much as 0.8 percent, which could result in global sales declines of American-built cars as high as 3.6 percent. The broader stock market rebounded on strong monthly jobs data.

"On top of the retaliatory measures announced yesterday, the Government of Canada today requested WTO consultations with the United States regarding its imposition of punitive tariffs on imports of steel and aluminium from Canada, and more generally, on the United States' improper use of national security pretexts for protectionist purposes", said Foreign Affairs Minister Chrystia Freeland in a statement released on Friday.

Business leaders in Canada and the US predicted dire economic consequences as result of the USA decision, which was felt widely across North America and Europe and touched off a storm of criticism on both sides of the Atlantic.

Across the European Union, the tariffs are expected to affect £5.6bn worth of steel exports. "The president's overwhelming objective is to reduce our trade deficit".

The U.S. president also reiterated his opinion that the trilateral trade pact has been "a lousy deal" for the United States since its introduction in 1994. And he repeated that while he was looking forward to continuing negotiations, the USA decision was based on national security grounds.

He said he used a private, bilateral meeting Thursday in Whistler to personally deliver that message to Mr Mnuchin.

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