Trump wouldn't mind replacing NAFTA with 2 deals

Theresa May Donald Trump

Theresa May Donald Trump

US and European officials held last-ditch talks in Paris on Thursday to try to reach a deal, though hopes are low and fears of a trade war are mounting.

Trump maintains that the U.S. has been unfairly treated in trade with its neighboring and oversees partners. French President Emmanuel Macron said Friday that he told Trump in a phone call that the new USA tariffs on European, Mexican and Canadian goods were illegal and a "mistake". "If Americans got all their clothing, all their food, all their goods and services for free, they still couldn't compete with other countries because the economy has been so financialized that American labor has been priced out of world markets".

Mr Trump went on to say the USA loses "a lot of money with Canada" and "a fortune with Mexico" and that while he loved both countries, they took "advantage of us economically". That is not Free or Fair Trade, it is Stupid Trade. "Any government that embarks on a protectionist path inflicts the most damage on itself".

The Trump administration confirmed this week that it will impose tariffs on imported steel and aluminum from the European Union, Canada and Mexico.

The EU took the United States to the World Trade Organization to challenge the legality of the new tariffs and the Trump administration's national-security justification.

Regarding the dispute with the United States, the EU says in a document submitted to the WTO that USA tariff measures "adversely affect exports of these goods from the European Union to the United States".

"Canada is a secure supplier of aluminum and steel to the USA defense industry, putting aluminum in American planes and steel in American tanks", Trudeau said.

"That Canada could be considered a national-security threat to the United States is inconceivable". We lose a lot of money with Canada, and we lose a fortune with Mexico.

All six of the other G-7 countries are paying the tariffs, which are largely aimed at curbing excess production in China.

In a statement, European Commission President Jean-Claude Juncker said "this is protectionism, pure and simple".

Brussels previously threatened to slap tariffs on USA products including bourbon, motorcycles and blue jeans, as well as other products.

Mnuchin said he had already passed on some of the G7 comments to Trump and said the president would address trade issues with other G7 leaders.

Ross and Lighthizer seemed like the odd men out at this week's gathering at the OECD, an global economic agency that includes the a prominent member.

According to Commerce Secretary Wilbur Ross, the U.S. wants to keep negotiating a possible deal that opens markets in Europe to United States exports. The bloc plans to impose 25 percent tariffs on around 200 American products by June 20.

"To be honest with you, I wouldn't mind seeing NAFTA where you'd go by a different name where you make a separate deal with Canada and a separate deal with Mexico", Trump told reporters.

That summit, which will be hosted by Prime Minister Justin Trudeau, will also mark Trump's first visit to Canada as president.

"These tariffs will harm industries and workers on both sides of the Canada-U.S. border and will disrupt supply chains that have made steel and aluminum from North America more competitive across the whole world", he said in a press conference in Ottawa.

While the tariffs being higher than expected could certainly have ramifications for U.S. businesses, experts say they would be permitted under global law.

Meanwhile, last month and earlier Thursday, Ottawa also unveiled measures to stop transshipments of steel and aluminium into the North American market, hoping to satisfy U.S. concerns and avert a trade war.

The import duties will give a boost to American makers of steel and aluminium by making foreign metals more expensive.

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