US President Trump threatens auto tariffs against Canada if trade talks fail

Canada warns the U.S. it will strike back if it imposes tariffs on the Canadian auto industry

Canada warns the U.S. it will strike back if it imposes tariffs on the Canadian auto industry

"Canada must wait", Trump posted.

The issues the two countries are hammering out include what percentage of auto industry components need to be made in North America to avoid tariffs, and how many cars and trucks need to be made in factories paying higher wages.

The president tweeted that an agreement with Mexico "is coming along nicely". "And then the idea will be can we get a big trade deal prior to [Donald Trump's] next election" in 2020, Farley said.

The U.S. -Mexico talks for a reworked North American Free Trade Agreement resumed three weeks ago, without Canada, after negotiations involving all three members of the $1.2 trillion trade bloc stalled in May. It is Canada that has proven the stumbling block in renegotiating NAFTA.

At the close of the 3rd consecutive week of discussions in Washington, Guajardo said a deal was still possible by the end of the month.

Media reports say today's meeting between U.S. Trade Representative Robert Lighthizer and Mexican Economy Minister Ildefonso Guajardo ended with bilateral work still to be done.

He said any deal with Mexico must take care of American autoworkers and farmers, but he praised the new president of Mexico, calling him "an absolute gentleman".

The federal government finds itself in a holding pattern on NAFTA negotiations with one-on-one talks between the United States and Mexico set to spill into next week.

However, he acknowledged: "We still have a lot of work to do".

Adam Austen, a spokesman for Canada's foreign minister, added: "We're glad Mexico and the USA continue to work out their bilateral issues. And the answer is no, as long as the USA and Mexico have not resolved their issues, specifically auto". However, he added that he supports the effort and that Canadian negotiators are ready to work long hours to help make it happen.

MacNaughton has listed some of those stubborn areas.

Latest News