Trudeau expects 'difficult' conversations with Trump at G7

U.S. President Trump greets Canadian Prime Minister Trudeau at the White House in Washington

In retaliation for the Trump administration announcing tariffs on steel and aluminum imports from Mexico and much of the rest of the world, Mexico Tuesday imposed a series of tariffs against United States exports to its market valued at $3 billion. British forces burned down the White House and much of Washington, D.C., in August 1814 after Americans attacked York, Ontario, which was then a British colony. Also notable are job losses in agriculture, an industry that was a prime target of the retaliations set into motion by Mexico, the European Union, and Canada.

CNN reported on the exchange, citing sources familiar with the call.

Last week, the US imposed steel and aluminum tariffs on the European Union, Mexico and Canada.

After returning from the G-7 finance ministers summit in Canada, Mnuchin made the case that the USA has a $2 billion steel surplus with Canada and a almost $26 billion services surplus, and should consider making an exemption for its northern neighbor, according to the sources. Canada dominates, supplying more than a quarter of all US steel, aluminum and iron imports in 2016.

"I think the important thought here is he may be moving quickly towards these bilateral discussions instead of as a whole", Kudlow said.

Trump responded with a puzzling- and erroneous -question about Canadian history.

Despite the tensions, Trump is sticking to his guns, saying that the United States "must, at long last, be treated fairly on trade".

Nevertheless, the War of 1812 remains the last full-scale conflict that pitted Canadian against American, and it remains a point of contention between both countries.

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"If the numbers are accurate, an additional $70 billion in USA exports to China would be considerable - a 50 percent increase in US exports from 2017 levels", Chad Bown, a senior fellow at the Peterson Institute for International Economics, said in an email.

Trump suggested last week that NAFTA could be replaced with two separate trade accords, one with Mexico and another with Canada.

The tariffs, meanwhile, have further complicated the U.S. The United States trade representative office told the Washington Post that the USA actually has a trade surplus with Canada.

Mexico and the USA had total trade of about $557 billion in 2017, with a balance of $71 billion in the favor of Mexico.

Adding to the uncertainty is European anger over Trump's decision to pull the United States out of the worldwide nuclear agreement with Iran.

Critics of Trump's trade policies fret that the president is undermining the very system on which America and the global economy rely.

The tariffs will make those US products more expensive for Mexican consumers.

"The United States economy is growing".

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