Trump says 'getting there' in NAFTA talks with Canada, Mexico

20 June, 2018, 04:37 | Author: Regina Silva

But he admits Trump has a point when it comes to the export of U.S. dairy products to Canada.

Freeland, who was testifying before House of Commons trade committee, wouldn't tip the government's hand, but she committed to hitting back hard with retaliation similar to Canada's $16.6 billion response to the new USA metal tariffs.

"The tariffs to get common items back into Canada are so high that they have to smuggle them in", he said.

Separately, Foreign Affairs Minister Chrystia Freeland told MPs she believes a deal to renegotiate NAFTA is still possible despite the punitive tariffs the Trump administration has slapped on Canadian steel and aluminum in the name of national security. "They scuff 'em up, they made 'em sound old or look old".

"Canada's not going to take advantage of the United States any longer", Trump said.

On July 1, Canada is set to impose retaliatory action of $16.6 billion on US products after Trump slapped tariffs on aluminum and steel - and he has threatened more to come on automobiles.

Trump claimed that in order to avoid paying U.S. tariffs on goods, such as shoes, we are literally just wearing them across the border and passing them off as old.

Cross-border shopping is now being used by the US President to call NAFTA one of the worst trade deals ever made.

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The event was ostensibly held to honor small business owners, but Trump played his greatest hits during his speech, in which he conflated refugees seeking asylum in the USA with violent gang members, took shots at Hillary Clinton, and made a confounding claim about Canadians smuggling shoes over the border to avoid paying tariffs. Canadians are eligible for duty-free exemptions only if they have been out of Canada for at least 24 hours.

"We absolutely understand the centrality of the automotive sector to our economy, to our relationship with the USA and to NAFTA", Freeland said.

Foreign Affairs Minister Chrystia Freeland told the Commons global trade committee that the "absurd and insulting" USA action will meet with a firm response.

Trump also blasted Canada's supply management system for dairy and poultry, calling it a "barrier".

Trudeau has promised to retaliate against steel and aluminum tariffs the US has put on Canada's metals industries.

She confirmed that the United States is still insisting a new NAFTA deal have a five-year expiry clause. "And I think we all agree that it is important for Canada to stand up in defence of the global rules-based order, and we will do so".

The US applies an average tariff rate of 11.86%.

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