Trump Threatens Canada With Auto Tariffs If NAFTA Talks Fail

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"The US and Mexico, which have been in bilateral negotiations for about three weeks, appear to be getting close" to agreement over auto manufacturing, David MacNaughton said in an interview on BNN Bloomberg television.

"Will tax cars if we can't make a deal!" the president said.

Adam Austen, a spokesman for Canadian Foreign Minister Chrystia Freeland, who is leading NAFTA trade talks for Canada, said the minister was in regular contact with her Mexican and USA counterparts.

"Overall, while the recent push confirms our view that an agreement is just a matter of time, an early deal would help to further diminish uncertainties that have hampered investment in Mexico since President Trump was elected, nearly two years ago". Officials have essentially agreed that a new NAFTA trade deal would exempt existing Mexican auto plants from any "Section 232" tariffs.

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"We're glad Mexico and the USA continue to work out their bilateral issues".

Guajardo told reporters last week that he would return to Washington, DC, to meet with Lighthizer this week.

Mexican Economy Minister Ildefonso Guajardo said that Mexico and the United States have "been making a lot of advancements" in their talks. The level of confrontation in the pair's auto negotiations has decreased since Washington dropped a demand for a USA content requirement, but Ottawa is gearing up for more contentious fights.

"News reports suggest that important advances took place in the critical auto-sector rules of origin, covering minimum national/regional content specifications, and wages in Mexico". New President of Mexico has been an absolute gentleman. He said they include dispute resolution, agriculture issues, intellectual property, government procurement, the proposed inclusion of a five-year sunset clause and the de minimis threshold, which is the maximum value of an item that Canadians can order from a foreign country without paying duties or taxes. But the USA side was sticking to a hard stance in the final stretch of the year-old NAFTA talks, trying to extract concessions as another late August deadline for a deal approaches, one industry representative said. Trump did not clarify in his tweet whether he referred to the ongoing renegotiation of the North American Free Trade Agreement (NAFTA) with his two neighbors or to individual negotiations on other commercial aspects.

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