Australia urges end to US-Canada dispute

By AAP Newswire

Foreign Minister Julie Bishop has urged the United States and Canada to resolve their differences over trade as tensions rise after a divisive meeting of global powers.

US President Donald Trump and Canada's Prime Minister Justin Trudeau clashed after the G7 conference in Quebec over the weekend.

Mr Trump left the meeting early before firing off a series of scathing tweets about his Canadian counterpart after Mr Trudeau said his country would not be pushed around by US trade restrictions.

Mr Trump labelled Mr Trudeau "dishonest" and "weak" after he criticised tariff threats at a media conference.

Ms Bishop is confident the long-standing allies will solve the issue, arguing an open and liberalised trade environment is in Australia's interests.

"We are urging all sides to resolve their differences on trade amicably," she told reporters in Canberra on Tuesday.

If the dispute can't be resolved, the two countries can take the matter to the World Trade Organisation, she said.

But Ms Bishop is hopeful the two countries will sort things out as soon as possible.

"They're both dear friends of Australia," she said.

Ms Bishop said the Turnbull government's strong relationship with the US administration was behind Australia securing an exemption to US import tariffs on steel and aluminium.