Mexico hits back with $3 billion in tariffs on US products

French President Emmanuel Macron and U.S. President Donald Trump | Alex Wong  Getty Images

French President Emmanuel Macron and U.S. President Donald Trump | Alex Wong Getty Images

The meeting between Macron and Trudeau will help the two leaders to agree on and create a common front against America, after US President Donald Trump, chose to impose tariffs on steel and aluminium imports from Canada, Europe and Japan.

U.S. President Donald Trump is not backing down from the tough line he has taken on trade, the White House's top economic adviser said on Wednesday, setting the stage for a showdown with top allies at this week's G7 summit in Canada. "Maybe, but nobody is forever", when flanked by Canadian Prime Minister Justin Trudeau.

Emmanuel Macron has called on other members of the G7 to stand up to Donald Trump's trade policies in the face of what he described as the threat of a new U.S. "hegemony".

When asked if the comment was received as a joke, one source on the call said: "To the degree one can ever take what is said as a joke".

In response to the Trump administration's 25% tariff on steel and 10% on aluminum, Trudeau intends to hit the US with his own 25% steel tariff as well as a 10% tariff on consumer goods from the U.S.

Last week, the Trump administration hit Canada and Mexico with steel and aluminum tariffs, the product of a national security-related investigation that both countries view as an affront to their close alliances. Trump later said he "had no idea" whether the claim was true.

Leaders dismiss Trump's national security concerns as "ridiculous".

Miraculous rescue of baby buried under volcanic ash
Guatemala's National Institute of Seismology head Eddy Sanchez had predicted "no imminent eruption over the next few days". Naomi Diaz of the Ciraiz Beauty Academy said they were moved to help because they saw people who had lost everything.

U.S. President Donald Trump talks to the media at the White House in Washington, U.S., June 1, 2018.

The official said that the tariffs imposed last Thursday had significantly increased tensions before the meeting, adding to the strain caused by the US withdrawal from the Paris accord on climate change and an agreement lifting sanctions on Iran.

While other World Trade Organisation members are also considering retaliating by targeting iconic American products - such as bourbon whiskey and Harley-Davidson motorcycles - the escalating tensions between Mexico and the USA may further complicate the renegotiation of the NAFTA.

On the other hand, it may be created to signal that Trump is in fact willing to end the quarter-century-old agreement, the firm says in its trade report published today (7 June).

Treasury Secretary Steven Mnuchin responded: "We believe in the G-7, it's an important group", adding that Trump looks forward to the gathering. Last month he announced he was imposing tariffs on steel and aluminum imports from these countries, infuriating numerous foreign leaders who have pledged to confront him during the G-7.

Still, Macron is undeterred and affirms his friendship with the famously temperamental U.S. president.

Trump is to attend the summit Friday and Saturday before flying to Singapore for a historic meeting with North Korean leader Kim Jong Un on 12 June. She also said the lack of room for compromise meant leaders might not agree on the traditional final statement.

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