December 7, 2018 4:04 pm
Updated: December 11, 2018 7:33 pm

Morneau says U.S.-China trade spat delaying talks to solve steel tariffs

WATCH: U.S. sees 'hard deadline' for China trade deal


MONTREAL — Finance Minister Bill Morneau says the ongoing U.S.-China trade dispute is distracting from talks aimed at solving the steel tariffs issue between Canada and its largest trading partner.

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READ MORE: Here’s how Canadian businesses are affected by Canadian retaliatory tariffs

At an event in Montreal Friday, Morneau said the Americans’ Pacific trade row puts “multiple challenges on their plate.”

“That means we’ve got a challenge in getting this focused on in the near term,” he said.

Morneau said his office is in contact daily with U.S. officials as well as metal producers and purchasers, but could not offer a timeline for an end to the tariffs.

WATCH: Trudeau tells Trump that GM closures example of why steel tariffs creates economic barriers

U.S. President Donald Trump slapped tariffs of 25 per cent and 10 per cent on steel and aluminum imports, respectively, from Canada in May, prompting retaliatory tariffs by Canada on $16.6 billion worth of U.S. goods.

Meanwhile, American tariffs against China have triggered a tit-for-tat trade war affecting hundreds of billions of dollars in goods over the past year.

READ MORE: Companies receive $11,000 in duty relief after Ottawa collects $286M in counter-tariffs

Despite a 90-day ceasefire announced Thursday in which the two countries agreed to suspend tariff hikes and work toward a resolution, the Dec. 1 arrest of Chinese telecom Huawei Technologies’ chief financial officer by Canadian authorities at the request of the U.S. Justice Department threatens to sour negotiations with Beijing.

Morneau’s remarks came hours after the first ministers’ conference kicked off two blocks away in downtown Montreal Friday morning.

Premiers Doug Ford and Francois Legault of Ontario and Quebec have said they plan to bring up concerns over tariffs, particularly in relation to the automotive and aerospace industries.

© 2018 The Canadian Press

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