Donald Trump Defends Tariffs: ‘We Can No Longer Be the Stupid Country’

Geoff Regan

But he admits Trump has a point when it comes to the export of U.S. dairy products to Canada. "The tariffs to get common items back into Canada are so high that they have to smuggle 'em in".

"Canada, they like to talk", he said, "they're out great neighbor".

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.

He did not indicate how this harms USA businesses, but went on to link this conduct to negotiations on the North American free-trade agreement (NAFTA), saying the United States will not be treated poorly by Canada any longer.

"They fought World War II with us. They scuff 'em up to make 'em sound old, or look old".

But then the president railed against the North American Free Trade Agreement between the U.S., Canada, and Mexico.

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But it is the investigation launched by the Department of Commerce - using the same national security clause - into whether tariffs should be slapped on cars and light trucks entering the USA that sparked major concern Tuesday for Conservative and New Democrat MPs. "We want to be the smart country" Trump said.

Prime Minister Justin Trudeau has noted that since Canada and the U.S have stood "shoulder to shoulder" in conflicts, it is insulting for our southern neightbour to impose tariffs on Canadian steel and aluminum for national security reasons. He'll learn, he can't do that, ' Trump said. "We'll see whether or not we can make a reasonable NAFTA deal".

"So hopefully we'll be able to work it out with Canada".

Canada is still preparing dollar-for-dollar retaliation on $16.1-billion of USA goods to take effect on July 1.

Carrie said he was anxious about the government's ability to craft a plan given it is running deficits and doesn't have a lot of fiscal room to deal with what he called the "eventuality" of USA auto tariffs. "It's not easy but we're getting there", he told a group of USA small business executives.

"Canada is not going to take advantage of the United States any longer, and Mexico is not going to take advantage of the United States any longer", he said.

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