President Trump threatens auto tariffs against Canada if NAFTA talks fail

‘Canada must wait’ on trade deal but agreement with Mexico coming along nicely, Trump tweets

Trump Threatens Tariffs on Canadian-Made Cars

U.S. President Donald Trump took to Twitter Friday evening, praising Mexico and threatening Canada. He described the newly elected Mexican president as "an absolute gentleman".

Trump went on to warn that he would tax Canadian auto exports if Washington and Ottawa could not arrive at a deal.

At Trump's direction, the Commerce Department in May launched a probe into whether imports of cars, trucks and auto parts pose a national security risk, invoking the same 1962 trade law used to justify broad tariffs on steel and aluminum - including those imposed on Canada and Mexico.

"Canada must wait", Trump posted.

Canada's foreign minister recently said the country is ready to resume NAFTA talks "as quickly and intensively as possible".

FILE PHOTO: Mexico's Economy Minister Ildefonso Guajardo speaks to the media during a news conference at Los Pinos presidential residence in Mexico City, Mexico May 1, 2018. "We'll keep standing up for Canadian interests as we work toward a modernized trilateral NAFTA agreement".

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USA and Mexican officials will continue to work on bilateral issues before their Canadian counterparts rejoin the discussions on modernizing the 24-year-old trade deal, Guajardo said Friday. "It's the only way we'll get to a deal", Austen said.

"But as I said before: nothing is closed until everything is closed".

Guajardo said that once bilateral U.S. There have been warnings Canada could be put in a position where it might have to accept a deal reached between the US and Mexico. -Mexican issues were resolved, Canada could rejoin the talks to work on tri-lateral issues. "And the answer is no, as long as the US and Mexico have not resolved their issues, specifically auto".

Trump demanded NAFTA be renegotiated after repeatedly criticizing the 24-year-old pact as a "terrible deal".

Bilateral NAFTA negotiations between the USA and Mexico have been building momentum in recent weeks after taking a break in late May ahead of Mexico's July presidential election.

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