Finance Minister Bill Morneau attends the G7 finance ministers meeting in Whistler, B.C., Thursday, May 31, 2018. THE CANADIAN PRESS/Jonathan Hayward

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

This week’s three-day pre-G7 gathering, which got underway Thursday, will “absolutely” now be focused on trade.

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.”

Related: Ottawa will work with Canadian aluminum, steel companies to ensure jobs safe: PM

Related: Canada responds to U.S. steel, aluminum tariffs with ‘countermeasures’ of its own

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 met for a bilateral meeting Thursday.

On his way to the meeting room, Mnuchin was asked by a reporter what he’s telling his G7 allies about the tariffs. He responded by saying: “Nice to see you, how are you?”

Later Thursday, Mnuchin didn’t join Morneau and most of their G7 counterparts for a photo-op before the opening dinner. Ministers and central bankers walked together down a street from their hotel behind a procession of Indigenous drummers to a nearby lodge, but Mnuchin was nowhere to be seen during their brief stroll.

Earlier in the day, Morneau 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.”

In Whistler, 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.

Related: Trans Mountain seeks stricter injunction at terminals in British Columbia

Related: Liberal government to buy Trans Mountain pipeline for $4.5B

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

A handy guide to the local municipal election

How and where to vote locally, plus links to candidate profiles

Editorial: Actions speak louder than (Facebook) words

When Facebook first made its mainstream debut on the web, it was… Continue reading

VIDEO: This is what buying legal pot in B.C. looks like

Take a look inside B.C.’s first and only legal pot shop located in Kamloops

Column: 2018 could be a record year for Douglas fir seed production

Columnist Jim Hilton tries his hand a fir-cone picking

USW strike action concludes after one day in Williams Lake

Union vice-president says talks resume in Kelowna Wednesday

Fashion Fridays: You can never have enough shoes

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Former B.C. cop sentenced to jail ‘in the community’ after caught in Creep Catchers sting

Dario Devic pleaded guilty after getting caught up in Surrey Creep Catcher sting in Whalley in 2016

5 races to watch in B.C.’s municipal elections this Saturday

This year’s election results across more than 160 cities in B.C. will start pouring in after polls close Saturday at 8 p.m.

Annual pace of inflation slows to 2.2 per cent in September: Statistics Canada

Statistics Canada said Friday the consumer price index in September was up 2.2 per cent from a year ago compared with a year-over-year increase of 2.8 per cent in August

Dog deaths in Lower Mainland may be tied to suspected mushroom poisoning: RCMP

Police have received reports in the last month about several dogs becoming ill after visiting a park in North Vancouver

Record-breaking $113 million Lotto Max jackpot up for grabs

This is Canada’s highest top prize offering ever and includes 53 Max Millions

Migrants, police mass in town on Guatemala-Mexico border

Many of the more than 2,000 Hondurans in a migrant caravan trying to wend its way to the United States left spontaneously with little more than the clothes on their backs and what they could quickly throw into backpacks.

Trump: ‘Severe’ consequences if Saudis murdered Khashoggi

Pro-government newspaper Yeni Safak on Wednesday said it had obtained audio recordings of the alleged killing of Saudi writer Jamal Khashoggi inside the Saudi Arabia’s consulate in Istanbul on Oct. 2.

Feds dead set against ‘ridiculous’ quotas to replace steel, aluminum tariffs

Donald Trump imposed the so-called Section 232 tariffs — 25 per cent on steel and 10 per cent on aluminum — back in June on national security grounds.

Most Read