Trump threatens auto tariffs against Canada, ‘terminating’ NAFTA to pursue deal with Mexico

Trump threatens auto tariffs against Canada, 'terminating' NAFTA to pursue deal with Mexico

File phototo courtesy Sean Kilpatrick/Canadian Press.

File photo courtesy Sean Kilpatrick/Canadian Press.

While announcing a bilateral trade “understanding” with Mexico that could overhaul the North American Free Trade Agreement, U.S. President Donald Trump is threatening more tariffs against Canada.

In the Oval office Monday, Trump says he will be “terminating” NAFTA to pursue a deal with Mexico, and said he would call Canadian Prime Minister Justin Trudeau “very soon” to negotiate a new trade deal.

Trump says if Canada does not negotiate fairly, the U.S. will look at putting new tariffs on Canadian cars and auto parts.

“(Canada) have tariffs of almost 300 per cent on some of our dairy products, so we can’t have that. We’re not going to stand for that,” Trump said.

“I think with Canada, frankly, the easiest thing we can do is to tariff their cars coming in. It’s a tremendous amount of money and it’s a very simple negotiation that could end in one day and we take in a lot of money the following day.”

Trump did say he was willing to give Canada a chance to have a separate deal or be folded into the agreement signed with Mexico.

Trump called the trade deal with Mexico the “United States-Mexico Trade Agreement”, and said the name NAFTA has bad connotations because it was an unfair deal to the U.S.

NAFTA talks ended in the spring and the U.S.-Mexico agreement could pave the way for Canada’s return to the continental bargaining table.

Trudeau has said his government will only sign a deal that is good for Canada.

With files from the Canadian Press.


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