France's Emmanuel Macron Throws Down Trump Twitter Gauntlet: G7 Can Be G6

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Mexico has announced new tariffs on US products in response to US President Donald Trump's decision to impose steep duties on imports of steel and aluminium.

He added: "The six countries of the G7 without the United States are a bigger market taken together than the American market".

As speculation started flying last month that a new North American Free Trade Agreement (NAFTA) was nearly across the finish line, the White House is now throwing a curve ball in the negotiations, deciding to move forward with tariffs on steel and aluminum imports from Canada and Mexico.

The fallout from Trump's imposition of steel and aluminum tariffs on his G7 partners, as well as broader disagreements on trade and climate change, was also fuelling the G6-plus-one divide that has the US increasingly offside with its allies.

"You say the US President doesn't care at all".

The topic led off debate Tuesday in the House of Commons, where Conservative Leader Andrew Scheer criticized the Liberals for announcing retaliatory tariffs that don't take effect until July 1 -a full month behind the US measures.

The list includes whisky, cheese, steel, bourbon, and pork, BBC reported on Tuesday.

A net importer of USA steel, Mexico is also putting 25 percent duties on a range of American steel products.

In Iowa, the top pork-producing state in the USA, with Mexico as its largest market, Republican Congressman Rod Blum is seen as vulnerable.

The U.S. floated the idea Tuesday of separate trade talks with Mexico and Canada rather than a new North American Free Trade Agreement (NAFTA) with the three countries as signatories.

"If our customers around the world start going to other parts of the world for their supplies, that is a serious problem", he said.

"It certainly casts a negative pall over the market", said CME livestock futures trader Dan Norcini.

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The US president in an earlier tweet on Thursday said that Canada and France are charging the US massive tariffs and creating "non-monetary barriers".

California farmers, he said, face a host of pressures and "trade has been the bright spot", noting that in 2016, the state exported almost half of what it produced in farm-gate value.

In Minnesota, about 14 percent of the state's $7.1 billion of annual agricultural exports goes to Mexico, one of the state's top export markets, said Matthew Wohlman, Minnesota Department of Agriculture deputy commissioner. Bob Corker, the official said.

"We can't engage in a trade war against friends".

Retaliation from Mexico, the largest export market for US pork, followed Canada's imposition of $122.8 billion in retaliatory levies on a variety of USA goods last week.

"The government commitment remains NAFTA", said one of several officials, all of whom spoke on condition of anonymity because of the sensitivity of negotiations and the ongoing efforts to manage relations with the U.S.

Trump doesn't plan on withdrawing from NAFTA, but he wants to try a different approach, Kudlow said, adding that his boss "hates multilateral" treaties.

The United States put a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports from the EU, Canada and Mexico since June 1. Last week Washington said it was ending a two-month exemption it had granted to imports from Canada, Mexico and the European Union.

During 2016 election campaign Donlad Trump has repeatedly said that he would pull the US out of NAFTA which was signed by the US, Canada, and Mexico back in 1994. Canada has also strongly objected to the metals tariffs.

After the USA announced it would impose the tariffs, a senior official told The Canadian Press that the chances of striking any deal on NAFTA-ever-had "just fallen through the floor".

Perdue said U.S. Trade Ambassador Robert Lighthizer is on the same page as the President, also wanting to pursue the bilateral route. "These moves have already hurt American businesses and caused great and unnecessary uncertainty and the pain will likely trickle down to American workers". "We think that demonstrating the strength of NAFTA as a solid community as we take on the world is very much in all three of our advantages, and we're going to continue to negotiate that way".

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