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Canadian Economy and Markets

White House economic adviser Kevin Hassett admitted that President Donald Trump was launching a “trade war” after insisting that tariffs against Mexico and Canada were part of a “drug war.”

During a Sunday interview on ABC’s This Week program, Hassett complained after the show referred to Trump’s “trade war.”

“I didn’t really think that the way you guys characterized the tariffs made sense to me, so I just want to go back to what happened,” he told host Jonathan Karl. “What happened was that we launched a drug war, not a trade war, and it was part of a negotiation to get Canada and Mexico to stop shipping fentanyl across our borders.”

“And so that drug war is something that’s been going on since really the beginning of the Trump administration,” Hassett argued, noting that the U.S. would also be launching “reciprocal” tariffs for countries that retaliate.

“You said Canada’s shipping fentanyl into the United States,” Karl noted. …

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