Canada retaliates, starts tariffs against the US

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The federal government is still expecting NAFTA talks to accelerate this summer even though U.S. President Donald Trump says he's in no rush to sign a deal until after the U.S. midterm elections this fall.

The economist tapped by Lopez Obrador to lead Nafta talks if he wins said on June 26 that he hopes a deal can be reached "within a couple of months".

It's in retaliation for USA tariffs placed on Canadian steel and aluminum.

He also said that Canada and Mexico should stick together rather than be tempted to sign bilateral trade deals separately - something Trump has called for.

Canada imposed tariffs on about $12.5 billion worth of USA goods, meant to be proportional to steel and aluminum tariffs imposed by the United States in June.

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In the interview on Fox News Channel's "Sunday Morning Futures with Maria Bartiromo", Trump again threatened to impose tariffs on imported cars, trucks and auto parts, saying, "The cars are the big ones".

He said Trudeau wanted to be on the ground with steelworkers at a family event on the day Canada's counter-tariffs came into effect to "make it really tangible what this is about". The E.U. and Canada have filed cases against the the World Trade Organization (WTO).

Canadian Minister of Foreign Affairs Chrystia Freeland announced the tariffs at a steel facility in Hamilton, Ontario, where she was flanked by brawny workers in yellow hard hats.

"We've been very nice to Canada for many years and they've taken advantage of that, particularly advantage of our farmers", she said.

Prime Minister Justin Trudeau's government released on Friday the full list of items that Canada is targeting.

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"Canada, you're not going to get 275 per cent for your dairy and you're going to take down all your barriers", Trump said as an example.

"I don't see how (Trudeau) is going to get this done", he said.

Trump railed against his trading partners during the meeting, according to sources, and withdrew his support for a joint communique after leaving the summit, angering and bewildering some of Washington's closest allies.

President Donald Trump said Sunday he wants to wait until after the election to finalize a new deal on the North American Free Trade Agreement - but it wasn't clear whether he meant the USA midterms in November, or a Mexican vote that's expected to lift a left-wing leader into power.

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