Trudeau says Canadians are tough negotiators

"Yeah, I did", he told a news conference in NY when asked by a reporter whether he had rejected a one-on-one meeting with Mr Trudeau.

Mexico has already signed on to a new deal to replace the North American Free Trade Agreement (NAFTA), but the USA leader is upset over Canada's tariffs on the U.S., and is considering implementing a new tax on Canadian-made cars.

That appeared to be a reference to Foreign Affairs Minister Chrystia Freeland, a former journalist and careful tactician whose star turn in Trudeau's government has earned her deep respect in the Liberal caucus and beyond.

"We're not getting along at all with their negotiators", Trump said, warning that the U.S. would soon go after Canadian auto imports.

U.S. producers actually sell more dairy product to Canada than they import, and the 300 per cent tariff only applies to goods above the quota, which the USA does not meet, according to trade experts.

The U.S. and Canada are at odds over anti-dumping dispute panels contained under Chapter 19 of the current deal, which the U.S. wants to remove and Canada wants to keep.

The U.S. dollar rose against a basket of major currencies after the Fed raised interest rates as expected for the eighth time, flagged more rate hikes and signalled the end of the "accommodative" policy era.

"They have treated our farmers in Wisconsin and NY state and a lot of other states very badly", he said.

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"The Americans are finding that the negotiations are tough because Canadians are tough negotiators, as we should be", the prime minister told reporters in Ottawa.

Trudeau and Trump were captured on camera briefly shaking hands on Tuesday during a luncheon for world leaders. "That's the big one", Trump explained. He said he would impose tariffs on all of Canada's automotive and auto part imports if they don't agree to unrelated changes to NAFTA.

Trudeau also said a good and fair deal is still "very possible".

Trump has said "a few times" that a new deal would mitigate the tariff issue, Trudeau said. Officials in the PMO insisted no such request had been made, given already close contact with the White House.

Trudeau, who has repeatedly stated he would rather walk away from NAFTA than sign a bad deal, spoke before Lighthizer at an event hosted by the Council on Foreign Relations in NY and took a more cautious tone.

"In Canada, the export is very focused historically on the US, so it's a little bit bigger step to try to get accustomed to the European Union system".

"We're going to go ahead with Mexico", he added.

Chantal Gagnon, a spokeswoman for Prime Minister Trudeau, also rejected the claim that the Canadian leader had requested a one-on-one meeting, stating: "No meeting was requested".

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