US trade tensions create 'difficult' G7 agenda

WHISTLER: Brewing trade tensions among the world's top economies has caused discord among allies and taken over the agenda as finance officials open their meeting Friday.

Canada Finance Minister Bill Morneau, representing the host country, said the Group of Seven officials would push back against Washington's decision to impose steep steel and aluminum tariffs starting Friday.

"Clearly that is going to be a difficult discussion," he told reporters. "We are sending the message that these measures are not helpful."

"It clearly is just taking the position that we're going to destroy American jobs and we're going to destroy Canadian jobs through inappropriate measures."

Ottawa on Thursday unveiled countermeasures on more than Can$16 billion (US$12.8 billion) in US goods, joining other outraged US trading partners as the world's major economies inched towards open trade conflict.

"We see that response as being a way to get us back to the table so the effects actually don't happen," Morneau said Friday.

"Canada is not a security risk and therefore we should move forward on a different basis."

Morneau said the US tariffs also weakened the prospects for successful negotiations to overhaul the North American Free Trade Agreement.

"Certainly, these actions taken on these tariffs are not ones that are conducive to a positive dialogue," he said.

But Washington has indicated NAFTA is on a back burner. Commerce Secretary Wilbur Ross said Thursday there now is no precise date for completing the talks and President Donald Trump said Friday he would like to see separate agreements with Canada and Mexico.