The United States and Mexico have reportedly found much more common ground than the U.S. and Canada during ongoing North American Free Trade Agreement renegotiations. Now, the Trump administration admitted it could still levy auto tariffs on Canada.
Notably, General Motors, Ford and Fiat-Chrysler have large operations north of the border. GM recently moved K2 truck production to the Oshawa plant in Canada as it plans to sell the outgoing Chevrolet Silverado and GMC Sierra alongside the new T1 trucks.
“Probably sometime in the month of August we’ll be willing to render a report. It may not be necessary, or it may be necessary. We will see,” Commerce Sec. Wilbur Ross told CNBC in a Sunday report.
Canada has reportedly stood on the sidelines of current NAFTA talks as Mexico and the U.S. hash out details between one another. Canada insists it’s still very much a part of the discussions. Mexico has also said it speaks regularly to the country’s trade counterparts.
The Trump administration, and the president himself, has noted he’d be willing to work out a bilateral trade deal with Mexico and then negotiate a separate Canadian deal at a later point in time. However, both Canada and Mexico have gone on the record to support a trilateral deal via a modernized NAFTA.
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If NAFTA falls apart, Trump and the Republican party will lose a high percentage of voter support from the entire auto industry, including suppliers and dealership employees.
The Republican Senate still does have leverage over the Trump administration, should he get carried away with Tariffs for all.
Trump always proclaims that tariffs are easy . Be aggressive , beat on the opponent , make the deal . My goodness , just like his old TV show. The man is a certified genius . Somewhat lacking in friends but by golly with Putin, his buddy by his side , what more does he need ? Personally I would like to see Canada close it’s border to the US, close the US embassy . Only vehicles made in Canada avoid any 25 % duty . Put up a fence , keep truckers from smuggling guns up here to the crooks and arrest any NRA idiots that try to cross over !
The tariffs only hurt US businesses that continue to make products or buy products outside the US? It’s a 25% tax payable to US Customs. I should know, I am a CFO of a US Manufacturing company that makes 90% in the USA. But the products and tools we get from outside the US will never be cheaper here even with 100% tariff. There are just some products that will never be produced here period. Trump lacks any knowledge of how trade deficits work. He is a glorified real estate agent. Be a bully sometimes work but most the time it doesn’t. Right now the Steal Industry here is doing great but everyone buying from them is hurting from their jacked up prices. It didn’t create jobs just increased costs that will and have been passed down to us. Meanwhile our exports are being hurt and the farmers are in need of a Government bailout because of the trade war. Trump plays to an uneducated audience that believes in black and white, right or wrong. Meaning, if I create a huge tariff GE will start making washing machines here and not in China. That will never ever happen.
I like your “Steal Industry”…
Trump wants to force the US people back to horse and carriage by making cars expensive beyond everybody’s reach.
If he would really care about the “American worker”, he would help the teachers fighting for fair wages, also the workers in the fast food chains, and to unionize the South, where the old Slavocracy still prevents workers from organizing.
While the profits are booming, the real wages stagnate since the 1970ies.
Would it not be better to put Trump on the table…
For Trump, It’s all about bringing in more voter support for himself and his party.
In this process, if some existing Trump/party supporters/businesses get burned via a tariff, Trump doesn’t care, provided he continues to bring in more new voters/supporters than he will lose.
If he can gain five million voters, as he loses one million auto industry related voters, then he will be less concerned about implementing hard line tariffs.