Jun 3, 2018 - Economy

G7 nations lambast the White House for undermining open trade

Khorri Atkinson

Canadian Prime Minister Justin Trudeau. Photo: David L. Ryan/The Boston Globe via Getty Images

President Trump's announcement that the U.S. is slapping new tariffs on its neighbors and confidants, is driving a wedge between the U.S. and its closest allies, with finance ministers of G7 nations lambasting the White House for undermining open trade, per the AP.

The big picture: Trump's trade war is extending far beyond China. Last week, the administration announced a decision to impose a 25% percent tariff on steel and a 10 percent tariff on aluminum from the European Union, Canada and Mexico.

The latest: Canadian Prime Minister Justin Trudeau told NBC’s “Meet the Press” on Sunday that Trump slapping new tariffs on Canada was "insulting and unacceptable."

The idea that we are somehow a national security threat to the United States is quite frankly insulting and unacceptable.

Yes, but: White House economic adviser Larry Kudlow on "Fox News Sunday" brushed aside Trudeau's concerns, saying that the prime minister is "overreacting" to the new tariffs. "I don’t think our tariffs are anything to do with our friendship and longstanding alliance with Canada," Kudlow said.

What others are saying: The G7 ministers said the Trump administration must abandon the proposed tariffs ahead of next week's summit with leaders. They also urged Treasury Secretary Steven Mnuchin to acknowledge their concerns in his address before them, per the AP.

Bruno Le Maire, France’s finance and economy minister, said it's up to the U.S. to rebuild confidence among G7 members and to avoid any escalation or further fallout.

Go deeper: What happened with Trump's latest trade moves

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G7 nations lambast the White House for undermining open trade

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