Trump, Trudeau discuss trade tariffs on phone

Donald Trump and Justin Trudeau have discussed trade and economic issues in a phone call a day after Canada announced tariffs on US goods.

A file image of Canadian Prime Minister Justin Trudeau

Canadian leader Justin Trudeau has discussed trade with US President Donald Trump in a phone cal. (AAP)

US President Donald Trump has spoken with Canadian Prime Minister Justin Trudeau to discuss trade and other economic issues, White House Press Secretary Sarah Sanders says.

The phone call late on Friday between the two leaders was the first to be publicly disclosed since Trump blasted Trudeau as "very dishonest and weak" at the end of the Group of Seven leaders meeting in Canada earlier this month.

Trump has repeatedly suggested Canada was profiting from US trade, and his blistering comments after the G7 meeting drove bilateral relations to their lowest point in decades.

On Friday, Canada struck back at the Trump administration over US steel and aluminium tariffs, vowing to impose punitive measures on $C16.6 billion ($17 billion) worth of American goods until Washington relents.

During the call, Trudeau told Trump that Canada had no choice but to announce reciprocal countermeasures to the steel and aluminium tariffs, according to a separate statement issued by Canada late on Friday.
The two leaders agreed to stay in close touch on a way forward, the statement added.

Trudeau also expressed his condolences for the victims of the shooting at the Capital Gazette newspaper in Annapolis, Maryland, the Canadian statement said.

Separately, Trudeau also spoke with Mexican President Enrique Pena Nieto on Friday to discuss the Mexican elections on July 1. The two leaders also discussed the North American Free Trade negotiations and agreed to continue working towards a mutually beneficial outcome.

Negotiations to modernise NAFTA started last August and were initially scheduled to finish by the end of December, but the three countries have yet to reach a deal.


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