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Retaliating for tariffs imposed by the Trump administration, Mexico hit back Tuesday with fiscal penalties on USA exports like pork, steel, cheese and whiskey.

The comments in the White House press briefing room came shortly after both Canadian Prime Minister Justin Trudeau, who is hosting the G-7 summit in Quebec's Charlevoix region, and German Chancellor Angela Merkel forecast hard discussions on Friday and Saturday. As a colony of Great Britain, Canada was swept up in the War of 1812 and was invaded a number of times by the Americans.

That put it behind only Canada in terms of the value of USA exports.

You'd think that as the current occupant of the White House, Trump might have heard about the incident in some detail. "An opportunity for friends and allies to come together and have a direct conversation".

During the Burning of Washington, on August 24, 1814, first lady Dolley Madison famously rescued a portrait of George Washington before fleeing the White House.

But trade tensions are heating up, culminating in a heated phone call between President Trump and Justin Trudeau, in which Trump dropped some history on the Canadian Prime Minister.

"The idea that we are somehow a national security threat to the United States is, quite frankly, insulting and unacceptable", Trudeau told NBC's Meet the Press.

President Donald Trump with Canadian Prime Minister Justin Trudeau during the Women's Entrepreneurship Finance event at the G-20 Summit in Hamburg, Germany, on July 8.

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Mexico said yesterday that it will challenge the metal tariffs at the World Trade Organization, following the leads of Canada and the European Union. The meetings on Friday and Saturday will be the first opportunity for America's closest allies to express their frustration in face-to-face meetings with Trump after he imposed steel and aluminum tariffs last week.

"There is no reason to use this provision to consider imposing tariffs on the automobile industry, and this appears to be either an attempt to affect domestic politics ahead of the election or for some other transactional objective regarding ongoing trade discussions".

Displaying a united front, the two leaders in their 40s said in a statement they "support a strong, responsible, transparent multilateralism to face the global challenges".

Some White House officials are discussing additional economic penalties in response to the $13 billion in retaliatory tariffs Trudeau has promised, the Washington Post reported Wednesday.

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.

JP Morgan's top strategist Marko Kolanovic said President Trump's tough talk on trade has wiped $US1.25 trillion off the United States stocks since March.

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. Add Trump Administration as an interest to stay up to date on the latest Trump Administration news, video, and analysis from ABC News.

Approval of USA leadership has plummeted under Trump in nearly every allied country except for Israel, according to Pew Research global polling.


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