Trudeau: Canada not US security threat Jump to media player The US tariffs on Canada are "totally unacceptable", Canadian Prime Minister Justin Trudeau says.
The move is likely to bring retaliatory action from European Union trade regulators, who have warned they will target US products as motorcycles, jeans and bourbon if additional US tariffs are imposed.
The rejigged pact will substantially boost US access to Canada's dairy market and protect Canada's auto industry from possible US tariffs – a key Trump threat.
The move is in retaliation to the US tariffs imposed on EU steel and aluminium.
If not, the new US tariffs coming into force will be followed by more on both sides.
The Chinese yuan slipped against the dollar again on Thursday as Beijing tries to mitigate the impact of US tariffs.
Third, it could be that the macroeconomic effects of even the full panoply of US tariffs, together with foreign retaliation, are relatively small.
In response to the US tariffs on China, the country's foreign ministry suggested soybeans, airplanes, cars and cotton could be targeted.
Theresa May arrived at the two-day meeting of the seven most developed economies urging a restrained retaliation from the EU to US tariffs on steel and aluminium.
China, the world's second biggest economy, has always been Trump's main target, and it has been affected by new US tariffs, as its domestic economy was already slowing.
There is also the danger of additional US tariffs on other products and sources, such as motor vehicles manufactured in Europe and Mexico.
