By Andrea Hopkins
OTTAWA, March 7 (Reuters) - Canada is sticking to itskeep-calm strategy as U.S. President Donald Trump ramps up tradewar rhetoric, convinced that no move is the best move for thecountry with the most to lose, but critics say it risks being asoft target if its strategy fails.
While the European Union immediately drew up a list of U.S.products from bourbon to blue jeans to hit if Trump followsthrough on a plan to impose global duties on aluminum and steel,Canada has gone with equivocation.
"We're making sure we take all discussions around trade withthe United States in a measured way," Finance Minister BillMorneau said on Tuesday.
"From our perspective the way to deal with a partner, todeal with our neighbor, is to be constructive. We're going tocontinue to be strong allies of the United States, we're goingto continue to be neighbors, and we're taking that as our frameto negotiate for a better outcome."
From the outset, Prime Minister Justin Trudeau has taken adecidedly sunny approach to the unpredictable president,launching an outreach campaign to save NAFTA one encounter at atime with as many U.S. lawmakers, governors and administrationofficials as possible. Liberal government's approach is largely backed acrossthe political and business spectrum but pressure is building toabandon the measured tone.
"Trump has already treated China and Russia with more kidgloves than us. Why is that?" said John Weekes, Canada's chiefnegotiator for the original NAFTA deal.
Weekes said Canada should draw up a long list of possibletargets for retaliation, and publish it for public comment in abid to ramp up U.S. concern about the pain of a trade war.
"I'd be the first to agree that retaliation is a mug's game,but how do we help our allies in the United States make the caseto change the course of policy?" he said.
Labor too, is demanding more action.
Jerry Dias, president of Canadian private-sector unionUnifor, said the government's keep-calm approach had been theright one up until Trump's planned steel tariffs. Canada shouldwalk away from the NAFTA table if it is not exempted from thetariffs, he said, and put tariffs on U.S. steel exports in kind.
"There comes a time where you have to say 'enough is enough'because the U.S. does not want to deal, that is crystal clear,"he said.
A source familiar with Canadian government thinking saidretaliatory measures were "a live conversation going on at thismoment" and would be deployed if the tariffs are implemented.Trump has linked the tariffs with ongoing NAFTA negotiations. the divide-and-conquer strategy of the outreach tourin the United States, those close to the trade file say thatdealing with Trump brings its own imperatives.
"We have to keep calm. It's pointless talking in publicabout the ways you might retaliate until you have to act," saida second source familiar with the issue who spoke on thecondition of anonymity.
"As for people who stomp around and say 'We will strikeback' – why would you do that? It just irritates the president."