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U.S. President Donald Trump is not backing down from the tough line he has taken on trade, the White House's top economic adviser said on Wednesday, setting the stage for a showdown with top allies at this week's G7 summit in Canada.

A senior Canadian government official said discussions on the global economy on the first day of the summit, which is scheduled for Friday and Saturday, would quickly turn to trade issues.

Macron has concluded that the other members of the G7 - the UK, Germany, Japan, France, Italy and Canada - must stand up to the U.S. over Trump's decision to impose tariffs on steel and aluminium from the European Union, Canada and Mexico as well as other issues.

Trump's recently announced tariffs are only the latest move signaling US departure with traditionally close allies. "I regard this as much like a family quarrel". "I believe in cooperation and multilateralism because I will resist hegemony with all my strength".

Trudeau described the tariffs as "unilateral and illegal" and the national security pretext as "risible".

According to White House economic advisor Larry Kudlow, Trump's preference now is to actually negotiate with Mexico and Canada separately.

Canadian Prime Minister Justin Trudeau rejects a U.S. proposal to scrap the North American Free Trade Agreement in favor of a bilateral trade pact.

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One insider would only say there was nothing "tense" about the May 25 call.

The list was drawn up by European Union trade officials this year. And the concerted resistance to Trump's tariffs is also undermining his favored approach of bilateral negotiations with countries to secure specific concessions in exchange for relief from the threatened levies. Some said the issue could be tackled by the leaders in direct talks.

Asked about Trump's remark that the Canadians burned down the White House, aides to the President and to Canada's Trudeau declined to comment.

With a trade war looming as a result of Trump's recent protectionist moves, now is probably not the right time to be making those kind of jokes. Tariffs, he added, are simply one more tool in the president's toolbox when it comes to repairing it.

Officials in Brussels, who are leading the member states' response, said nations had given broad support for a plan to set duties on €2.8bn (£2.5bn) of USA exports. "People should realize how serious he is in that respect".

Prime Minister Justin Trudeau and French President Emmanuel Macron attend a news conference on Parliament Hill in Ottawa on June 7, 2018.