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As reported by Reuters, Canada’s Prime Minister, Justin Trudeau, accused the Trump administration of “flimsy logic” regarding a new investigation into placing tariffs on foreign vehicles imported into the US, and suggested the move is specifically linked to NAFTA talks.  

Trudeau also predicted talk of tariffs would likely disappear if slow-moving negotiations to update the North American Free Trade Agreement – currently stuck on autos issues – are successful.  “I am – even more than I was with steel and aluminum – trying to figure out where a possible national security connection is,” Trudeau said. “Taking that a step further into autos seems to me to be on even flimsier logical grounds.” Trudeau continued, “But we know that this is very much linked to ongoing negotiations around moving forward on NAFTA.”

Talk of tariffs and potential trade wars will be on the agenda when Trump comes to La Malbaie for the G7 summit on June 8-9. Prominent G7 members such as Germany and France are also unhappy about what they see as Trump’s protectionist rhetoric.

 – Reuters

Canadian PM Trudeau has voiced Canada’s need to diversify away from trade flows with the US, who currently account for three-quarters of all Canadian goods exports. The Trump administration’s protectionist stance has seen Canada shift its attention to China as a potential major trade partner.