France Warns Trump That It Will Not Sign a G-7 Statement

Justin Trudeau

Justin Trudeau , Bloomberg

Now, the G7 summit has been transformed into an exercise in pure survival for the prime minister: prevent U.S. President Donald Trump from taking a wrecking ball to this exclusive club of the world's leading democracies. In response, Trump quipped to Trudeau, "Didn't you guys burn down the White House?" referring to the War of 1812.

US senior economic adviser Larry Kudlow called his country's trade dispute with Canada little more than a "family quarrel" Wednesday as media reports swirled about a tense phone exchange last month between President Donald Trump and Prime Minister Justin Trudeau.

The other G7 members - Canada, France, Germany, Italy, Japan, and the United Kingdom - are likely to bash Trump's recent tariffs and trade restrictions.

"The world trading system has got to be fixed and if nothing else, the US has to be protected", he said.

"There are disagreements. He's sticking to his guns".

Larry Kudlow, Trump's top economic adviser, tried to downplay the trade divisions during a press briefing on Wednesday.

"Communication lines are open", he said.

USA steel prices have risen almost 40 percent since the start of the year, and are now more than 50 percent higher than in both Europe and China, according to the S&P Global Platts benchmark price assessment for hot-rolled coil, the bellwether product. The state is the top pork-producing state in the United States and Mexico is its main export market by volume.

French president Emmanuel Macron, who describes Mr Trump as a "friend", has taken a more confrontational approach ahead of the summit.

US President Donald Trump is reportedly contemplating individual trade agreements with Canada and Mexico in a shift in North American Free Trade Agreement (NAFTA) negotiations. "There will be no world hegemony if we know how to organize ourselves".

The dispute with Mexico over tariffs makes it more hard to conclude talks on renegotiating NAFTA between the three countries, discussions that began past year because Trump said the deal needed to be reworked to better serve the United States.

The Mexican tariffs will hit its pork, dairy and potato exports, Minnesota state officials said.

In even blunter language, Mr. Macron told a joint news conference that the USA tariffs on European, Canada and Mexican steel and aluminum are "unilateral and illegal" and predicted that they will hurt global growth. USA stocks were trading higher on Wednesday. He is still looking forward to meeting his supposedly unscrupulous trade partners in Quebec, though.

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

Ministers from Germany, France and Britain have already written to USA officials urging them to shield European companies working in Iran from getting caught up in Washington's new sanctions on Tehran.

One insider would only say there was nothing "tense" about the May 25 call.

The remarks underscore the differences between Trump and his fellow G7 leaders over the usefulness of the global multilateral world order, something Trudeau and the other world leaders are struggling to defend.

"In this environment, above all we always have to stay polite, stay productive and try to convince (them) to keep the United States on board because they are our historical ally and we need them", Macron told a news conference with Trudeau in Ottawa.

Latest News