Canadian Prime Minister Justin Trudeau dismissed the threat of auto tariffs of the US as “negotiating tactic” for NAFTA. And emphasized that won’t push Canada to accept a bad deal. He added that “quite frankly that’s simply not something we’re going to do.” Trudeau also reiterated that “no Nafta is better than a bad deal” and “we are not going to move ahead just for the sake of moving ahead.”
He also talked down the collapse of NAFTA negotiation and said “the interconnectedness between the Canadian and U.S. economies is not going to change any time soon” and “you can’t get around geography”. And, “we are their (the Americans’) number one customer and there is no question that any disruption of that flow of goods, yes, would be terrible for the Canadian economy but would also be pretty terrible for a lot of U.S. jobs.”
Canadian Foreign Minister Chrystia Freeland is in Washington meeting with US Trade Representative Robert Lighthizer. She said there were “very productive discussions” but declined to give any details. Asked about the temporary exemption on steel tariffs that’s going to expire this week, Freeland said “our government always is very ready and very prepared to respond appropriately to every action. We are always prepared and ready to defend our workers and our industries.”
Trump brought up the issue of border wall again yesterday and said Mexico “do absolutely nothing to stop people from going through Mexico, from Honduras and all these other countries … They do nothing to help us.” And he said “in the end, Mexico is going to pay for the wall.” Mexican President Enrique Pena Nieto responded in his tweet saying that “President @realDonaldTrump: NO. Mexico will NEVER pay for a wall. Not now, not ever. Sincerely, Mexico.”
To recap, there are a few deadlines for NAFTA negotiations to complete. Firstly, the temporary exemption on US steel and aluminum tariffs will expire on June 1 and it’s uncertain what will happen. Mexico Presidential election is upcoming on July 1. Timing is running out, or has already run out, for the current Congress to approve the new NAFTA deal within this year. And less pressing, the US has started national security investigation on automobile imports that could lead to new tariffs.
