Trump says Canada is ‘very spoiled’ and ‘very difficult’ on trade

26 May, 2018, 00:13 | Author: Dustin Murphy
  • Canada's Prime Minister Justin Trudeau seen here in La Malbaie Quebec

Washington said on Wednesday it had launched an investigation into whether vehicle and truck imports are a national security issue due to signs they had damaged the us auto industry.

American Commerce Secretary Wilbur Ross on Wednesday raised the threat of vehicle tariffs when he said he had initiated an investigation into whether auto imports "are weakening our internal economy and may impair the national security".

He added, "Core industries such as automobiles and automotive parts are critical to our strength as a Nation".

However, US Commerce Secretary Wilbur Ross has announced an inquiry into auto imports under a Kennedy-era trade expansion act that protects national security.

China is a relatively minor player in the USA auto import market, ranked 10th in dollar terms, but its massive vehicle industry is eager to expand overseas.

The Trump administration opened a trade investigation on Wednesday into whether vehicle imports had damaged the us auto industry.

"If he can say, 'We've reached some kind of an agreement or framework where we can build more cars, build more American parts in North America, in the United States, ' that's a great sign to his voters about more jobs", Ambrose said.

The investigation, known as a Section 232 investigation, would determine whether the import of cars and truck threatens national security interests.

In addition to recently imposed 25 percent tariffs on steel and 10 percent tariffs on aluminum imports, the administration has threatened tariffs on $50 billion worth of Chinese goods over intellectual property complaints, and Beijing has vowed to respond.

Trump has repeatedly vowed to impose tariffs to protect the United States auto industry, having been elected in 2016 on a promise to bring back millions of lost American jobs from overseas. "Free trade creates jobs, wealth and economic growth", a spokesman said, adding that its plant in SC to produce its Volvo brand cars showed its commitment to the country. Thirteen, soon to be 14 companies, produced almost 12 million cars and trucks in America previous year.

Pointing to a mixed bag of effects on USA producers after the metals tariffs, analysts were cautious about predicting major gains for US companies and workers from the process.

However, while President Trump has long promised to protect the US auto industry, it's far from clear that the industry itself wants protecting. "We are very dependent on the ability to bring in parts from other parts of the world for final production in the USA, and if that's no longer financially viable, the question becomes, is the production of vehicles in this country going to be financially viable?" But given the importance of the USA market to these firms-and the fact. "I am not happy with their requests but I will tell you, in the end we win, we will win and we'll win big".

"I'm increasingly getting the impression that the United States does not believe in competition for ideas and customers anymore, but only in the law of the jungle", said Eric Schweitzer, president of the German business group.

Trump said what Canada and Mexico are asking for in a renegotiated NAFTA is "not fair" and he called both countries "spoiled because nobody's done this" - presumably referring to previous American administrations that have not stood up to their NAFTA partners.

"This is a deal that matters deeply to the citizens of our three countries", he said.

"You'll be seeing very soon what I'm talking about", he said before his trip to Long Island.

David Adams, president of the Global Automakers of Canada, which represents Japanese vehicle manufacturers Honda and Toyota, says the news is "perplexing" because tariffs would make cars more expensive in the United States, hurting the US consumers Trump wants to protect.



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