Trump’s ‘absurd’ tariffs central to Morneau’s event for already embattled G7

WHISTLER, B.C. — The Trump administration’s “absurd” tariffs on steel and aluminum sent protectionism rocketing to the top of Bill Morneau’s G7 agenda Thursday as he and his fellow finance ministers from the exclusive club of rich countries braced for the inevitable economic impact.

With his pre-selected program shoved aside, Morneau made it clear the discussions in British Columbia’s Coast Mountains will have little choice but to focus on U.S. President Donald Trump’s widely denounced trade offensive against Canada and other G7 allies.

The American move — which prompted retaliatory measures from Canada and others — threatens to drive a powerful wedge into the G7, and could fracture the long-standing multilateral relationship into something observers describe as a “G6 plus one,” with the U.S. as the outlier.

This week’s three-day pre-G7 gathering, which got underway Thursday, will “absolutely” now be focused on trade, thanks to a U.S. tactic that’s widely seen as the death knell for jobs on both sides of the Canada-U.S. border.

“We think it’s absurd that Canada is considered in any way a security risk, so that will be very clearly stated by me,” Morneau said of the U.S. decision to justify the tariffs on the basis of national security.

“I have every expectation that our other allies around the table will express the same sentiment.”

Morneau said he expects the G7 to keep pressure on the U.S., hoping to force it to reconsider — and he fully expects the effort to continue at next week’s leaders’ summit in Quebec’s Charlevoix region. The summit will be Trump’s first visit to Canada as president.

In addition to Canada and the U.S., the other G7 countries are Japan, the United Kingdom, France, Italy and Germany.

The Whistler meetings will also give Morneau and other G7 ministers an opportunity to hold face-to-face discussions with U.S. Treasury Secretary Steven Mnuchin, with whom Morneau was scheduled to hold a 30-minute bilateral meeting late Thursday.

He spoke of his “strong” relationship with Mnuchin, but even friends have disagreements, he noted.

“When we face challenges, we can’t get through them without talking,” said Morneau, who attended Mnuchin’s wedding last year.

“We’re not saying there won’t be frictions, we’re not saying that we won’t have strong words.”

Earlier in the day, the bombshell news was hard to miss, even if a panel of prominent economic and political leaders did their level best to avoid it. During one particular Q and A, the panellists largely steered clear of direct questions about the U.S. tactic and its likely consequences.

Instead, they strenuously defended he G7, stressing its role as an important leader that, for example, helped the world economy avoid a second Great Depression about a decade ago.

“Thank you, Amanda, for lobbing that grenade my way — I’ll try and jump on it,” joked Bank of England governor Mark Carney, a former Bank of Canada governor, as moderator Amanda Lang tried to broach the subject.

The panel also featured International Monetary Fund managing director Christine Lagarde, former prime minister Paul Martin and Tiff Macklem, a former senior deputy governor of the Bank of Canada.

“At the end of the day, if trade is massively disrupted, if the level of trust of the economic actors amongst themselves is severely damaged — first of all, those who will suffer most are the poorest, the less privileged people,” Lagarde said.

In the past, Trump had extended tariff exemptions for Canada and others beyond existing deadlines. That didn’t happen this time, perhaps catching by surprise some G7 officials who had expected Trump to avoid imposing them this time around.

On Thursday, Foreign Affairs Minister Chrystia Freeland said Canada would levy tariff “countermeasures” of its own on up to $16.6 billion worth of imports of steel, aluminum and other products from the U.S.

The tariffs pulled focus away from the pre-selected, overarching themes for the Whistler meeting — topics that closely line up with key domestic policy areas promoted by the federal Liberal government.

Those include finding ways to ensure economic growth benefits more people, as well as a push towards gender equality and the empowerment of women.

Whistler, which continues through Saturday, will also feature joint sessions between G7 development and finance ministers with a goal of finding ways to increase support for poor nations — with help from the private sector — under a focus of girls’ education.

The tariff file also lands on Morneau’s desk at a time when he’s already been consumed in recent weeks — and particularly in recent days — by a major domestic issue: the controversial Trans Mountain pipeline expansion.

Earlier this week, Morneau announced the federal government made a $4.5-billion offer to buy Trans Mountain from Kinder Morgan and would build the expansion itself in order to overcome political opposition in B.C.

Just Posted

Central Alberta school divisions to support rural students through agreement

Wolf Creek to bring Enhanced Learning Model courses to Clearview schools

WATCH: Red Deer Catholic students re-envision a local wetland for school project

Father Henri Voisin Grade 3 teacher introduces ‘real-life’-based education

Manslaughter charge stayed against Maskwacis man

Man was accused of manslaughter in connection with the death of his mother in 2015

Red Deer Mounties make numerous arrests over the past two weeks

Over the past two weeks, Red Deer RCMP have made a number… Continue reading

Leslieville Elks’ new hall rising from the ashes

Leslieville Elks Lodge grateful for outpouring of support

WATCH: Red Deer Catholic students re-envision a local wetland for school project

Father Henri Voisin Grade 3 teacher introduces ‘real-life’-based education

Charges dropped against Alberta property owner in rural shooting

OKOTOKS, Alta. — All charges have been dropped against a man accused… Continue reading

China blocks John Oliver on social media after scathing show

BEIJING — A popular Chinese social media site is censoring discussion of… Continue reading

Most Red Deer Advocate readers would call police when witnessing a crime

An overwhelming number of Advocate readers would call the police if they… Continue reading

So much TV, so little summer: Amy Adams, Kevin Hart, Dr. Pol

LOS ANGELES — The fall television season is months away but that’s… Continue reading

BlackBerry Q1 revenue, adjusted earnings beat estimates but stock falls

TORONTO — BlackBerry Ltd. shares sank almost 10 per cent to their… Continue reading

OPEC countries to pump more oil to contain price increase

VIENNA — The countries of the OPEC cartel agreed on Friday to… Continue reading

Man sentenced for Edson triple murder

EDMONTON — An Alberta man who fatally shot three people has been… Continue reading

‘Hot Dog Water’ seller in Vancouver gets laughs, sales with savvy marketing

VANCOUVER — A Vancouver man who sold bottles of “Hot Dog Water”… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month