On trade, it's Trump who's retaliating

US President Donald Trump accuses India of charging 100 per cent tariff on some imports

Mr. Trump wrote (below).

Senior government officials are quietly drawing up a list of ways for Canada to retaliate against the United States if it's hit with even more tariffs by its closest ally.

Trudeau had announced that the G7 members - Canada, France, Germany, Italy, Japan, the United Kingdom and the USA - had agreed upon a joint communiqué, or formal statement, after a hard week on trade issues.

June 7 - On the eve of the G7 summit, Trump tweets that Trudeau is "being so indignant" in bringing up the history of U.S. We are like the piggy bank that everybody is robbing and that ends, and two, specific threats that it has to stop or we will stop trading with them, "them" being people that don't align their trade practices with USA interests, and warning that if you retaliate against steel and aluminum tariffs, you'll be making a mistake. "Now, these are things that the prime minister said before, basically, but he didn't say them before (or) after a successful G7 communique, where President Trump and the others all worked in good faith to put a statement together, which, by the way, nearly nobody expected to happen".

Trudeau had said Canadians "are polite, we're reasonable, but also we will not be pushed around".

Of the 32 states that count Canada as their biggest export destination, 20 voted for Trump in the 2016 election. A more recent example Trump has cited is Canada's dairy tariff of up to 300 percent and its heavily subsidized dairy industry.

The president seems to think raising US tariffs will accomplish that end.

"Fair trade is now to be called fool trade if it is not reciprocal", he wrote in one tweet that then went on to accuse Canada of imposing unfair taxes on U.S. dairy products. But it's worth asking the question of what toll unleashing a full-scale character assassination - "there's a special place in hell" is pretty strong stuff - on Canada's head of government means for how the U.S. is perceived in the world.

In a flurry of tweets from Air Force One, en route to Singapore for a historic summit with North Korea's Kim Jong-un, Trump accused Justin Trudeau, Canada's prime minister and host of the summit in Quebec, of being "very dishonest".

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Before Trump even jetted to the conference on Friday morning, he floated the possibility of Russian Federation rejoining the G7.

"PM Justin Trudeau of Canada acted so meek and mild during our G7 meetings only to give a news conference after I left saying that, "US Tariffs were kind of insulting" and he "will not be pushed around".

"State of the Union" host Jake Tapper asked Kudlow what right Trump and other USA officials had to be offended by Trudeau's comments, given the dispute.

After comments Sunday by Kudlow and White House trade adviser Peter Navarro, Canada's foreign affairs minister said Ottawa "does not conduct its diplomacy through ad hominum attacks" and was justified in responding to Trump's tariffs.

Last week, Canada hit back at Trump administration by announcing retaliatory tariffs on up to 16.6 billion Canadian dollars (12.8 billion US dollars) worth of USA steel and aluminum as well as a diverse list of other products.

Kudlow's and Navarro's comments come on the heels of a tense G7 summit that left relations with USA allies even more fractured than before.

Trump wasn't alone in attacking Canada: Two of the president's highest-ranking economic advisers also joined in. "I'm arguing Trudeau picked the fight", he said.

In a volley of tweets the U.S. president, who is in Singapore to meet the North Korean leader, said: "Fair trade is now to be called fool trade if it is not reciprocal". He adds that America "cannot let our friends, or enemies, take advantage of us on trade anymore".

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