The United States and Mexico formally announced a new trade agreement that would end the NAFTA trade agreement signed in 1994. President Trump spoke with President Nieto of Mexico over the phone with Media in the room.
The Mexico-U.S. discussions focused on crafting new rules for the automotive industry, which Trump has put at the heart of his drive to rework the pact he has repeatedly described as a “disaster” for American workers.
I don't know if there's a whole lot of detail out right now about the agreement but President Trump said it would be one of the biggest deals in US history and that the formal signing of the agreement would take place some time in November. He also called on Mexico to increase purchases of US agricultural products because of the trade war with China and them canceling deals on food products which would be good news for the farmers.
“I think with Canada, frankly, the easiest we can do is to tariff their cars coming in. It’s a tremendous amount of money and it’s a very simple negotiation. It could end in one day and we take in a lot of money the following day,” Trump said.
Looks like Canada is going to be tougher to deal with according to what President Trump was saying today. They have a huge tax on US dairy products which makes the US dairy farmers unable to sell products north of the border. I'm guessing a tariff on autos would be much bigger problem for Canada than letting US dairy farmers compete but we'll see how all that works out in the coming weeks.
The good news here is it looks like NATFA is going away which was a terrible deal for the United States. There's no reason the US can't produce its own cars like we did 20 or 30 years ago.
Thanks again Mr. Trump for keeping your promise of America first.