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Canada announced almost $13 billion in retaliatory tariffs against the United States after the Trump administration slapped duties on aluminum and steel imported to the US.

"The administration is threatening to undermine the economic progress it worked so hard to achieve", Chamber President Tom Donohue said in a statement.

NAFTA has been in effect since the beginning of 1994, but renegotiations between the U.S., Canada and Mexico started a year ago and are still ongoing.

Many of the United States products were chosen for their political rather than economic impact. It has already backed candidates who share those goals in Republican primaries. Some of the countries have already retaliated and filed legal challenges with the World Trade Organizaion.

"If he can say, 'We've reached some kind of an agreement or framework where we can build more cars, build more American parts in North America, in the United States, ' that's a great sign to his voters about more jobs", Ambrose said.

It appears Trump, too, is not backing down.

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Ms Freeland said there are no grounds for further USA tariffs in response to Canada's actions. Both industries are at the centre of the current trade dispute with the United States.

Canada's response includes imposing $16.6 billion worth of tariffs on a long list of consumer products that come from a wide range of sectors - from beer kegs, to ballpoint pens, to ketchup. But he lifted the exemptions the same week he met with Group of Seven leaders in Quebec last month.

Trudeau, meanwhile, kept his remarks upbeat today as he spoke to a crowd in Leamington, praising Canadians for their supportive attitudes in the face of a trade dispute with its largest trading partner. On Monday, Harley-Davidson announced it would move some of its production overseas, citing the EU's new tariffs on American-made motorcycles.

A National Farmers Union representative says American farmers are growing even more concerned over President TrumpDonald John TrumpTrump congratulates Mexico's new president: "I look very much forward to working with him" Comedian who allegedly prank-called Trump says he has hired Michael Avenatti Ex-Trump aide pushes for Hope Hicks as chief of staff: Trump will "listen to women more than men" MORE's new trade tariffs.

Global equities fell on Monday as investors anxious about an escalation of the trade disputes.

A long-time critic of NAFTA, Trump demanded that Mexico and Canada agree to re-open the 1994 pact with an eye toward changing provisions he sees as an unfair to the US, Efe news reported.