United States misunderstands NAFTA, North American business body says

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The Trump administration may undertake trade actions to protect the US semiconductor, shipbuilding and aluminum industries, citing national security concerns, Commerce Secretary Wilbur Ross told the Wall Street Journal in an interview on Tuesday.

He said Canada was hurting American dairy farmers near the border, from Wisconsin to NY, by blocking dairy exports "and we're not going to put up with it". Trump tweeted on Tuesday that "we will not stand for this".

He made the comment on Tuesday while imposing sizeable tariffs on all softwood lumber that Canada sells to the USA, apparently in retaliation for Canada's decision to close its market to ultra-filtered milk that originates on dairy farms across Wisconsin.

"Canada, what they've done to our dairy farm workers, it's a disgrace", Trump said.

The old U.S. -Canadian softwood lumber agreement worked well until it expired in 2015, resulting in no limits on the amount of lumber that could be imported from Canada, said Wayne Brandt, executive director of the Duluth-based Minnesota Timber Producers Association. "But really, as the president, Secretary of Commerce, and others have pointed out, the issues in terms of the timber industry and the difference between what it is for Americans to do business in Canada versus Canadians to do it in the United States", Walker said. "Whenever they have a surplus, I have no fear", he told reporters.

"We have massive trade deficits", Trump said.

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"We are fearful this will have an impact on jobs, but it's hard to quantify at this point", said Whittaker.

"There are millions of good U.S.jobs that depend on smooth flow of goods, services and people back and forth across our border", he said. Natural Resources Minister Jim Carr said Tuesday that the new tariffs will hurt people in both countries, including American homebuyers who will now pay more for wood.

The Commerce Department proposed a 20 percent tax on Canadian lumber.

He said there is roughly $15 billion worth of softwood lumber used in houses in the United States and about 31.5% of that comes from the Canadians."So that's roughly $5 billion a year". But Obama's USA trade representative, Michael Froman, now at the Council on Foreign Relations, says the Canadians chose to gamble on the new administration. "Now there is more milk in the market trying to find a home and we don't have enough homes for the milk supply that we have", said Matteson.

The U.S. imported $278.1 trillion worth of goods from Canada in 2016. The problem is the reverse, they're prohibiting USA dairy producers from selling their products in Canada, as a practical matter, and we're looking into whether there are measures we can do to try to correct that, he said. "Ontario will protect the jobs and communities that forestry supports".

"Most of the times when these issues are raised publicly they are feeding a domestic agenda that necessitates a response", he said.

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