US And Mexico Reach New Deal Over NAFTA, Trump Threatens Canada With Auto Tariffs

President Trump has been highly critical of the North American Free Trade Agreement (NAFTA) and has complained it effectively sends jobs to Canada and Mexico. His administration has been working on renegotiating the agreement for about a year and it appears big changes are coming.

In a press release, The White House announced it has secured a preliminary agreement with Mexico that “modernizes and rebalances the trade relationship to reflect the realities of the 21st century.” The administration didn’t go into specifics, but said the proposed United States–Mexico Trade Agreement is a “mutually beneficial win for North American farmers, ranchers, workers and businesses.” The government went on to say the proposed agreement will create “more reciprocal trade that grows the economy, supports high-paying jobs for American workers and protects American intellectual property.”

One of the biggest changes in the agreement focuses on so-called “rules of origin” that concern automobiles. The government says the changes will “incentivize billions a year in vehicle and automobile parts production in the United States, supporting high-wage jobs.” While nothing is official, it appears the proposed agreement will require vehicles built in Mexico to use more North American-sourced components to achieve duty-free status.

In a statement, Trump said “America has … finally turned the page on decades of unfair trade deals that sacrificed our prosperity and shipped away our companies, our jobs and our Nation’s wealth.” His sentiments were echoed by Vice President Mike Pence who said “The U.S.–Mexico Trade Agreement is a win for American ranchers, manufacturers and auto workers.”

South of the boarder, the reaction was more subdued as the office of Mexican President Enrique Peña Nieto released a statement saying the two nations have “reached an understanding on the main issues of importance for both countries.” The Mexican government went on to express their desire for Canada to rejoin the negotiation process with the hopes of “concluding a trilateral negotiation this week.”

Canada’s absence in the latest round of negotiations was notable and The Detroit News reports discussions with America’s neighbor to the north will start soon. Unfortunately, they’re already off to a rocky start as Trump threatened Canada with more tariffs.

In a press conference, Trump said “I think with Canada, frankly, the easiest thing we can do is to tariff their cars coming in.” He went on to say “It’s a tremendous amount of money and it’s a very simple negotiation.”

If Trump were to follow through on his threat, a number of automakers would be significantly harmed. Fiat Chrysler Automobiles, in particular, would have tariffs on the entire Chrysler lineup, while Dodge would get hit on the Charger and Challenger which are made in Ontario.

  • Raul

    Women in the military is the sign of the country not being great.

    • Carl Sloan

      What does this have to do with anything? The story is about NAFTA.

      • Raul

        i’m talking about the military, not the NAFTA. Comeback and try again.

        • Carl Sloan

          The ARTICLE you’re commenting on is about a TRADE AGEEMENT, fool. It has nothing to do with the military.

          • Raul

            you love to argue online. What a troll culture you live in.

          • Carl Sloan

            Sit down.

          • Raul

            go cry somewhere else troll.

        • Carl Sloan

          The ARTICLE you’re commenting on is about a TRADE AGREEMENT, fool. It has nothing to do with the military.

          • Raul

            Why do you americans love to argue online? Is this a troll culture that your country is always into. This is why i always get on you online trolls that loves to argue for everything. Get a life and stop commenting on my post if has nothing to do with you.

          • Carl Sloan

            In the USA we don’t SPAM comment boards with IRRELEVANT comments. Get some class.

          • Raul

            -In USA we are noisy americans so we can cause problems.

            troll

          • Carl Sloan

            Get lost, moron.

          • Raul

            -knows what i said is true.

  • Carl Sloan

    “While nothing is official, it appears the proposed agreement will require vehicles built in Mexico to use more North American-sourced components to achieve duty-free status.”

    What a crock! Mexico and Canada are BOTH “North American” countries. This DOESN’T help AMERICAN workers. We’re NOT all on the same team. WTF?

    • S3XY

      No they’re not

  • S3XY

    You’re jealous

  • S3XY

    All Trump wants is for things to be produced here in America. And thats great.

  • karmat

    I hear a lot of talk about Canada’s supply management of dairy, but what do you mean about Chinese affiliation and deceptive trade practices?

  • Jweisberg

    You post lies. Lopez Obrador agrees with the trade deals and hopes it can be signed before he takes office. He also wishes the Canada will join in. So I don’t know where you are getting your info from.

  • Nick099

    AMLO’s chief negotiator was in on the deal from the start.

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