Trump calls for fair trade, warns countries of reciprocal tariffs

He termed North America Free Trade Agreement (NAFTA) a terrible deal for the United States.

US President Donald Trump said he likes free trade but it should be a fair trade. He warned other countries of reciprocal tariff if they keep on imposing high tariffs to US products. 
 
“You know, all of these countries, including the European Union, they charge five times the tariff. They charge five times what we charge for tariffs. I believe in the word ‘reciprocal’. You’re going to charge five times? We’re going to charge five times. That hasn’t been done. No other president ever brought it up. And it’s going to be done now,” Trump told reporters at the White House a few days ago. 
 
He termed North America Free Trade Agreement (NAFTA) a terrible deal for the United States.  
 
“We lose over USD 100 billion a year with Mexico. We lose many, many, many billions of dollars with Canada. They are (Canada) very restrictive as to taking our agricultural product and other things,” he said.
 
The United States, Trump said, was negotiating numerous deals with countries including NAFTA countries. 
 
“...I wouldn’t mind seeing a separate deal with Canada, where you have one type of product, so to speak, and a separate deal with Mexico. These are two very difficult countries. It’s been a lousy deal for the United States from day one.  We lose a lot of money with Canada, and we lose a fortune with Mexico. It’s not going to happen like that anymore,” he said.
 
The European Union and Canada, on the other hand, threatening retaliatory measures if the US government does not roll back tariff hike on new steel and aluminium.
 
"We still have a few days to avoid an escalation. We still have a few days to take the necessary steps to avoid a trade war between the EU and the US,” French Finance Minister Bruno Le Maire was quoted as saying after a meeting of G-7 finance ministers and central bank governors in Whistler, British Columbia.
 
China has said it wouldn’t increase the purchases of American products if President Donald Trump goes ahead with his threat to impose tariffs on Chinese imports.
 
The US, however, is unfazed by threats from allies. Top economic adviser Larry Kudlow said Trump is simply responding to decades of trade abuse.  
 
Source: Media reports

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