Automakers Under Threat During NAFTA Negotations

Officials from Canada, the United States and Mexico will soon start negotiating terms for a new NAFTA agreement and automakers are likely to feel the effects more than most.

Since taking office, President Donald Trump said he would either ditch the 1994 NAFTA agreement entirely or renegotiate it to the benefit of the U.S.

Speaking to Automotive News, a senior U.S. official said the countries are looking to fast-track the signing of a new deal and are being ambitious in the first round of talks.

According to the official, the U.S. wants a “more balanced, reciprocal trade agreement that supports high-paying jobs for Americans and grows the U.S. economy.”

In the U.S.’s attempts to even up its trade deficits with Mexico and Canada, automakers will be encouraged to ignore the prospect of cheaper labor in Mexico in favor of manufacturing vehicles and parts in the United States.

One key element of the talks will be focused on NAFTA’s rules of origin where goods imported into the U.S. from Canada or Mexico are hit with tariffs, something that could impact automakers who bring manufactured parts to the United States.

“In terms of the rules of origin, the overall goal is to address concerns about doing more to incentivize and create more manufacturing and more manufacturing jobs in the United States. I think each country expects benefits for itself from those rules of origin, and I think that’s what you’re seeing reflected in our objective statement,” the official said in anonymity.


  • Six_Tymes


  • Zandit75

    Does Trump only have the one suit and tie?

    • Enter Ranting

      One cheap, ill-fitting suit and one comically long tie that he tapes down. Both from his own line of clothing made in a sweatshop overseas.

  • John

    only if the deal can stop US automaker from making crappy car…
    sometimes I feel like even Korean make better cars than US.

  • Enter Ranting

    Hey! Where are those Drumpf supporters who used to remind us constantly who won the election? Did they pass out from all the winning?

  • Jason Miller

    “either ditch the 1994 NAFTA agreement entirely or renegotiate it to the benefit of the U.S.”

    Yeah, it’s all about us as usual. Screw them, right?

    • MarketAndChurch

      Not to mention that it’ll make our hemisphere poorer and accelerate the transfer of auto manufacturing over to China.

      A poorer Mexico will only mean more illegal immigration to deal with as people head north in search of a better life. A wealthy Mexico is a more politically-stable Mexico. None of this will be good for us or our neighbors.

      • Enter Ranting

        Amen. With a wealthy stable Mexico, we won’t need to spend billions on a feckless border wall.

  • Suicide is Painless

    It just keeps getting worse with this administration and this unhinged, unfit, uncouth person masquerading as the President. I’m sure he’ll irreparably screw matters up and then hold a press conference self-promoting how he’s the greatest president of all time, with his requisite self-marketing of his family’s rubbish holdings thrown in.

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