Trump praises Mexico, threatens Canada with auto tariffs via Twitter

NAFTA talks with Mexico drag on due to autos sticking points - Autoblog

Trump warns Canada of tariff on its auto exports

The President-elect appears to have struck a rapport with Trump after promising to improve Mexico's economy and security when he takes office in December.

Days later, Trump responded by praising his new Mexican counterpart and noted that the two men 'both achieved electoral success by providing a clear vision for making our countries stronger and better'.

The president said over the weekend that Canada's tariffs and taxes are far too high and repeated threats to tax the auto industry if a deal can't be reached.

"Discussions appear to have taken on a surprising urgency of late, with the USA focused on ironing out its differences with Mexico, while apparently freezing Canada out of the talks", ING analysts note. "Will tax cars if we can't make a deal!"

Some observers have raised concerns about Canada's absence from recent high-level negotiations on the three-country trade deal.

U.S. President Donald Trump issued a fresh warning that he would slap auto tariffs on Canada if NAFTA talks fail.

Trump has said recently he might prefer to end the decades-old Nafta pact in favour of inking separate, bilateral agreements with the US's southern and northern neighbours.

Trump slapped Canada and other allies with steel and aluminum duties, which led to retaliatory levies from Ottawa.

Of course, the trade talks are only bilateral at this time because Canada is not included in the talks between the US and Mexico. "It's the only way we'll get to a deal".

Ultimately it is in Canada's best interest to align with the U, they will.

Trump has repeatedly lashed out at Canadian Prime Minister Justin Trudeau over economic issues such as tariffs and trade policy. It seems that new sticking points have emerged over Trump's threat to impose steep automotive tariffs.

Earlier Friday, a source familiar with Ottawa's NAFTA effort said Canadian negotiators would not be returning to the bargaining table in Washington until the US and Mexico find common ground on their outstanding issues, especially the complex sticking points around the auto sector.

Guajardo stressed that the most hard issues had been left to the end, including the USA demand that NAFTA be approved every five years, a provision known as a sunset clause.

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