Trudeau will stand up to Trump on trade

Canada has the world's third-largest forest canopy, and is the largest producer of softwood, the bulk of which goes to the United States.

Trade relations will not be easy-going after the USA imposed 20 percent tariffs on Canadian lumber, warned Canadian Foreign Minister Chrystia Freeland.

"President Trump agreed not to terminate NAFTA at this time and the leaders agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation of the NAFTA deal to the benefit of all three countries", a White House statement said.

Mr Trump did not detail his concerns but said his administration would call Canadian Prime Minister Justin Trudeau and demand an explanation.

But in a separate conference call with the provincial premiers earlier on Tuesday, a readout from Trudeau's office said the prime minister underlined that "while Canadians are polite and fair, we will always strongly defend Canadian interests".

"The tariff that was announced today is a good first step but we don't believe it's enough", Regan said.

During his election campaign Trump threatened to renegotiate NAFTA and in the past week complained bitterly about Canadian trade practices.

President Trump wants to impose a 20 percent tariff on softwood lumber imports subsidized by Canada.

The Trudeau government is resisting the urge to drop the rhetorical gloves, sticking to its muted, don't-offend-Trump message discipline.

It has drawn criticism from industry groups from dairy-producing countries including Australia, New Zealand and Mexico, as well as the European Union, who say new prices for Canadian milk ingredients under-cut exports to Canada.

The rise came in the wake of the news that Washington will impose tariffs on five major Canadian lumber exporters.

Trump has criticized Canada's lumber and dairy policies, saying the latter is a "disgrace" that is hurting us dairy farmers. I think NAFTA has been a catastrophic trade deal for the United States, trading agreement for the United States.

"These are recurring challenges in what is a very big and complex Canada-US relationship, " he said.

Ross dismissed the idea that United States home prices would go up exclusively as a result of lumber tariffs, saying that the total cost of a home depends much more on the land than the product used to build the home. U.S. lumber companies have accused their Canadian counterparts of receiving government subsidies and dumping lumber into the USA market - much of which goes towards building homes.

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