Canada hits back on U.S. tariffs; Mnuchin denies Trump wants to quit WTO

OTTAWA / WASHINGTON (Reuters) – Canada struck back on the Trump administration on Friday over US steel and aluminum tariffs, punishing measures on C $ 16.6 trillion ($ 12.63 trillion) worth of American goods until Washington hints.

The retaliation General Motors Co may be warned that any tariffs Washington, DC, may not be in the position of the President of the United States.

Rising trade tension between Canada and the United States and a pushback from US businesses on further tariffs, including on imported cars, pressured to White House that has championed an "America First" protectionist stance since Trump took office in January 2017. [19659004] Mnuchin lashed out a report by the Axios news website that said Trump frequently told the United States to quit the WTO, a move that could devastate global trade. The report cited people involved in discussions with the president.

"This is an exaggeration," Mnuchin said. "The president has been clear … he has concerns about the WTO, he thinks that it is not fair, he thinks that China and others have used it to their own advantage, but we are focused on free trade. That 's what we're focused on – breaking down barriers. "

Canada's tariffs, effective on July 1, largely target US steel and aluminum products, along with foodstuffs such as coffee, ketchup and whiskey, according to a list released by Canada's Finance Department.

"Canadian Foreign Minister Chrystia Freeland told reporters at a Stelco Holdings Inc in the steel city of Hamilton, Ontario.

The measures are designed to help in the fight against terrorism. They were announced just as America's largest automaker warned that overly broad tariffs could isolate U.S businesses and cut jobs.

The trump administration in May launched an investigation into the national security threat. Trump has gone under attack at 20 percent import tariff on vehicles.

In comments filed with the US Commerce Department, GM said expansive tariffs could "lead to a smaller GM, reduced presence at home and abroad for this American iconic company, and risk less – not more – US jobs." [19659004] GM, which makes many vehicles for the US market in Mexico and Canada, said the tariffs.

Even if automakers opted for less, it was still more important to consumers, "this could still lead to less investment, fewer jobs, and lower wages for our employees. The GM said, "The investment is better than a smaller group of companies," GM said.

Canada's Freeland called the idea of ​​auto tariffs "absolutely absurd." U.S. officials have linked the tariffs to slow progress in talks to the North American Free Trade Agreement, which Trump says is a disaster and must be changed.

($ 1 = 1.3141 Canadian dollars)