Trump says he will put tariffs on Canadian-made cars unless Canada negotiates “fairly.”
#LSN_Opinion #LSN_Econ Spencer Fernando
Trump Announces “U.S. – Mexico Trade Agreement,” Scrapping NAFTA name
THUNDER BAY, ONTARIO - August 27, 2018 (LSN) Trump Announces “U.S. – Mexico Trade Agreement,” Scrapping NAFTA Name
U.S. President Donald Trump, in a call from the oval office with Mexico’s President Enrique Pena Nieto, have announced the “U.S. – Mexico Trade Agreement.”
Trump has announced that the NAFTA name will be scrapped, due to a “bad connotation” with the name.
The U.S. & Mexico reached agreement on issues particularly the manufacturing sector and the auto sector.
Now, the U.S. will use the deal with Mexico as leverage over Canada, with Trump saying Canadian-made cars will be hit with tariffs if Canada doesn’t “negotiate fairly.”
That would absolutely devastate the Canadian auto sector, and Trump appears to be setting up the Trudeau government to be forced to chose between Supply Management and the Canadian auto sector.
This situation represents the epic failure of Justin Trudeau’s and Chrystia Freeland’s strategy. Our leverage is gone, “solidarity” with Mexico was a massive mistake, and the virtue-signalling/lecturing approach has left Canada in a horrendously vulnerable situation.
Spencer Fernando