Mr Mnuchin and Mr Kudlow are often referred to as the "globalists" in the administration and they have clashed with US Trade Representative Robert Lighthizer and White House trade adviser Peter Navarro, who are more hawkish on China. That led to threats of retaliation. And he is also expected to attend the annual North Atlantic Treaty Organisation summit to be held in Brussels in mid-July.

It's a dark turn for the G-7, which first met in 1975 when it included only six countries: the U.S., U.K., Germany, France, Italy and Japan. "I'm always the optimist, I believe it can be worked out, and I'm always hopeful on that point".

He also says he relayed that message to a senior member of the Prime Minister Justin Trudeau's office.

Angela Hofmann, deputy director of Farmers for Free Trade, said the tariffs will exact immediate and painful consequences on USA farmers and the domestic economy.

The Trump administration announced that it was moving ahead with 25 percent tariffs on imported steel and 10 percent tariffs on imported aluminum, sparking major backlash.

A tariff is basically a tax on imports that raises the price of foreign company's products for American consumers, putting imports at a disadvantage to domestic producers.

Both Trudeau and Freeland have appeared on major American television networks in the past week to criticize the US tariffs as "unacceptable" and "illegal". Canada dominates, supplying more than a quarter of all US steel, aluminum and iron imports in 2016. What we are fighting over now, as the new order emerges, is whether the USA wants to have the most important seat at the table or not.

The EU came second at 14 percent, while Mexico ranked fifth with 5.4 percent of US imports.

Crow said the district's Republican incumbent, Mike Coffman, shares blame in triggering Mexican tariffs.

The official, speaking to reporters after Macron met Trudeau for talks in Ottawa on Wednesday, said the six non-U.S. G7 nations were united on the main topics to be discussed.

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"The World Trade Organisation has become completely ineffectual, and even in the rare moments when it makes decisions, important countries don't even abide by them", he added.

Mr. Trump was notably more muted in his treatment of Mexico and the European Union, even as they announced similar retaliations.

So far, only Canada and Mexico have done so. Mexico had signaled last week that it meant to retaliate against the U.S. steel and aluminum tariffs.

In retaliation for the USA tariffs, Canada has proposed a $16.6-billion tariff package on common Canadian imports from the United States, including beer kegs, appliances and decorative candles.

While tariffs on these products won't have much of an impact on the overall US economy, they could be especially painful for particular industries or regions. "Trump delivering well beyond what Putin had ever hoped for", Michael McFaul, a US ambassador to Russian Federation under Obama, said on Twitter.

Matthew Rooney, a former USA state department official in charge of the Canada file during the Obama administration, said there have been hard times in the past.

Asked by VOA News whether the administration would respect decisions of the World Trade Organization filed against the United States over recent tariffs imposed by Trump, Kudlow replied: "We are bound by the national interests here more than anything else".

"Canada is a secure supplier of aluminum and steel to the USA defence industry, putting aluminum in American planes and steel in American tanks", Trudeau said last week. One estimate put it at an additional $175 per vehicle. Essentially, the report indicates, for every steel and aluminum job gained there will be 16 jobs lost in other industries throughout the rest of the nation's economy.

The Mexican peso dropped to its weakest level since February 2017 following the government's announcement, to trade at more than 20 to the USA dollar.