U.S.downplaystradedispute

‘FAMILY QUARREL’: KUDLOW SHRUGS OFF ESCALATING CANADAU.S. TRADE FIGHT

Donald Trump’s top economic adviser dismissed differences over tariffs as a “family quarrel” Wednesday as reports of a testy phone call between the president and Prime Minister Justin Trudeau roiled Canada-U.S. relations ahead of this week’s G7 summit.

The fallout from Trump’s imposition of steel and aluminum tariffs on his G7 partners, as well as broader disagreements on trade and climate change, was also fuelling the G6-plus-one divide that has the U.S. increasingly offside with its allies.

Trudeau wanted the G7 to be a moment for Canada to shine, but the summit is rapidly turning into an exercise in pure survival: prevent Trump from taking a wrecking ball to the exclusive club of the world’s leading democracies, to say nothing of the country’s most critical trade nexus.

U.S. senior economic adviser Larry Kudlow played down his country’s trade dispute with Canada, and said he hoped Trump and Trudeau could work through their differences during their face-to-face meeting at the summit, which opens Friday.

“I regard this as much like a family quarrel,” Kudlow told a news conference in Washington, adding that he’s confident the current tariff angst will soon blow over.

“I’m always the optimist, I believe it can be worked out, and I’m always hopeful on that point.”

Kudlow, the director of the U.S. National Economic Council, refused to discuss what CNN first reported was a tense phone call recently between Trump and Trudeau.

According to CNN, when Trudeau pressed Trump to explain how he could use national security as the justification for the tariffs on Canada, the president reportedly replied: “Didn’t you guys burn down the White House?”

Trump was making a reference to the War of 1812, but it was inaccurate: it was British troops that attacked the White House.

Officials in the Prime Minister’s Office would not provide details on the call, other than to say it took place on May 25 — the day Trudeau has said he initially proposed a faceto-face meeting with Trump to try to finalize a new North American Free Trade Agreement.

That plan fell through when the White House insisted that he agree to including a five-year sunset clause in the deal.