HOLY COW: US-Canada tariff war EXPLODES amid concerns of beef prices

>> I WARNED THAT AMERICA IS. TRYING TO BREAK US SO THEY CAN. OWN US AND I PROMISED THAT THAT. WILL NEVER EVER HAPPEN. WE ARE KEEPING THAT PROMISE. CANADA IS BECOMING STRONGER AND. LESS DEPENDENT ON AMERICA. WE ARE ALRLREADY GIVING OURSELS. MORE THAN THEY CAN TAKE AWAY. AND WE ARE JUST GETTING. STARTED.

RICH: WE ARE TWO WEEKS FROM. CANADA DOUBLING ITS TARIFFS ON. US STEEL AND DAIRY PRODUCTS IN. RETALIATION FOR THE PRESIDENT. ANANNOUNCING 50% TARIFFS ON. CANADIAN PROJECT AFTER FAILED. NEGOTIATIONS. LET'S BRING IN AMERICAN IRON. AND STEEL INSTITUTE PRESIDENT. AND CEO KEVIN DEMPSEY AND. FORMER CHIEF AGRICULTURAL TRADE. -- TRADE NEGOTIATOR, GREG DOWD. WHEN YOU LOOK AT WHAT HAS. TRANSPIRED HOW DIFFICULT IS.

THIS FOR AMERICAN PRODUCERS OR. IS THIS A FIGHT THAT NEEDED TO. BE HAD? GREG:CAN IT IS OUR SECOND-BEST. CUSTOMER AT $1.3 BILLION IN. TRADE AND WE IMPORT HALF OF. THAT IN DAIRY FROM CANADA. WE HAVE A SUPPLY CONTROL SYSTEM. IN CANADA WHERE PRICE OF MILK. IN CANADA IS ALMOST DOUBLE WHAT. IT IS IN THE UNITED STATES. PROJECTIONS OF THE SYSTEM, WE.

ARE NOT BLOCOCKING OR FIGHTINGT. BUT THE FIRST USMCA WOULD. NEGOTIATED, AXIS ON TARIFF. QUOTAS THEY HAVEN'T IMPLEMENTED. THE WAY THEY SHOULD HAVE. WE GOT TO FIX THIS. RICH: WHAT DOES IT LOOK LIKE ON. THE STEEL FRONT? KEVIN:WHAT CANADA IS FACING, THE PRESIDENT PUT ON STEEL. TARIFFS AROUND THE WORLD, THE. MOST CONSEQUENTIAL TRADE POLICY. ACTION IN THE STEEL INDUSTRY IN. SEVERAL DECADES.

CANADA WANTS TO GET OUT OF. THOSE TARIFFS, IF YOU WERE. GOING TO HAVE A CHANGE IN YOUR. POSITION YOU HAVE TO PARTNER. WITH THE UNITED STATES AND JOIN. IN COMMON CAUSE WITH US TO. ADDRESS THE OVERSUPPLY OF STEEL. FROM AROUND THE WORLD AND 2. DAYS, CANADA HAS NOT BEEN. WILLING TO DO THAT. A MISSED OPPORTUNITY. RICH: HOW MUCH OF IS YOUR. CUSTOMER ARE THE CANADIANS? >> THEY ARE OUR SECOND LARGEST. MARKET AFTER MEXICO.

IT IS IMPORTANT TO MAINTAIN AN. EFFECTIVE TRADE POLICY REGIME, AND CANADA NEEDS TO BE JOINED. WITH THE US OR BE TREATED LIKE. THE REST OF THE WORLD. RICH: A LOT OF NEWS ON THE. CATTLE FRONT, THE SIZE OF THE. AMERICAN HEARD. IN THE GENERAL PRESS, THE. PRESIDENT SAYS RANCHERS NEEDED. MORE PROCESSING OPTIONS. HAS HE HELPED ON THAT FRONT AND. WHAT IS THE CHIEF BARRIER? IS IT REGULATION?

INTERNATIONAL PRESSURE? WHAT IS IT? >> I'M A PARTNER IN KANSAS. MYSELF. FOR THE PAST SEVERAL YEARS WE. WERE IN DROUGHT AND DESPITE A. CANONIC SIGNALS WE ARE. ABSOLUTELY WANTING TO EXPAND, WE CAN'T DO IT. IF YOU DON'T HAVE GRASS YOU. DON'T HAVE WATER AND CAN'T. INCREASE THE NUMBER OF COWS. THAT YOU OWN. THIS DECREASE THE SUPPLY OF. BEEF IN THE US. WE HAVE ALWAYS BEEN ONE OF THE. LARGEST IF NOT THE LARGEST BEEF. IMPORTER IN THE WORLD SO THE.

SITUATION IS WE HAVE. OPPORTUNITY TO EXPAND AS THE. WEATHER CHANGES, WE NEED TO. KEEP THE ECONOMIC INCENTIVE IN. PLACE AND BUT THE MARKET PLACE. WORK. ONCE WE MAKE THIS DECISION, ONCE THE OFFSPRING OF THOSE NEW. MOTHERS COME INTO PLAY THAT IS. THREE YEARS BEFORE YOU SEE AN. INCREASE IN RETAIL SUPPLY OF. BEEF SO WE HAVE TO CONTINUE TO. SEND A SIGNAL TO THE RANCHER TO. EXPAND. RICH: I WANT TO GET INTO WITH. THE ONTARIO PREMIER HAD TO SAY. IS THE PRESIDENT IS THREATENING. TO TARIFFS ON VEHICLES.

HE SAYS THE PRESIDENT CAN KISS. HIS REAR AND AFTER SPEAKING TO. THE CEOs OF THE AUTO SECTOR, THE STEEL SECTOR, EVERYONE WAS. SAYING WAS A TERRIBLE DEAL, HE. WOULD BLEED OUT OUR STEEL. SECTOR, OUR AUTO SECTOR, MANUFACTURING SECTOR, THE. PREMIER SAID HE WOULD BE. APPEARING ON US MEDIA TO REMIND. THE UNITED STATES PEOPLE THAT. HE TARIFF ON CANADA IS A TAX ON. THE AMERICAN PEOPLE. KEVIN, HAS THIS, THE RHETORIC. SURROUNDING OF THIS COMING FROM.

BOTH SIDES, DO YOU SEE A WAY. OUT OF THIS ANYTIME SOON? ARE YOU PREPARING TO WHETHER. THIS FOR SOME TIME? KEVIN:THE US STEEL INDUSTRY IS. DOING WELL UNDER PRESIDENT. TRUMP, OUR PRODUCTION IS UP TO. WE SURPASSED JAPAN AS THE THIRD. LARGEST STEEL PRODUCER IN THE. WORLD LAST YEAR. SHIPMENT ARE UP COMING IMPORTS. WAY DOWN, FOR US, KEEPING. CURRENT POLICY WILL WORK FINE. THE PEOPLE WHO ARE HURTING OUR.

THE CANADIANS STEEL PRODUCERS. BEING HIT WITH MORE IMPORTS. BECAUSE THEIR GOVERNMENT IS. UNWILLING TO JOIN AND TO DO. WHAT WE ARE DOING, THAT'S. HURTING THEM BUT LEADS THEM TO. EXPORT MORE STEEL TO THE US AND. THAT HURTS US. THE QUESTION FOR CANADA DO YOU. WANT TO JOIN WITH OF THE US AND. TO BE PART OF THE NORTH. AMERICAN BLOCK OF FORTRESS. NORTH AMERICA OR DO YOU WANT TO. JOIN WITH CHINA AND OTHER. COUNTRIES THAT ARE TAKING A. DIFFERENT APPROACH? RICH: GREG, IS THE RHETORIC. OVERSHADOWING REAL PROGRESS OR. IS IT A PRETTY ACCURATE.

ASSESSMENT OF HOW IT FEELS NOW? GREG:THERE HAS BEEN PROGRESS. I THINK THERE WILL BE A DEAL. I THINK WE WILL GO TO THE. DEADLINE BUT THERE WILL BE A. DEAL. CANADA HAS TO BE SEEN AS TOUGH. BUT WE ARE TWO NEIGHBORS, WE. GET ALONG WELL. THERE IS ALWAYS FRICTION. CANADA DRAGGED ITS HEELS FOR A. WHILE BUT WE WILL GET THERE AT. THE END OF THE DAY. RICH: THEY NEVER GOT A DEAL. GENERALLY.