"This will replace the USMCA," wrote the president.
It is not clear that the president, who repeatedly threatened the auto tariffs on the trading partners, would accompany his threat. If he does, Canada and Mexico can reasonably argue that all the agreements reached in the United States. are invalid, which results in the dissolution of a trade pact which is a critical agreement for companies throughout North America.
"Because he is so unpredictable, you are not sure he will stick to anything," said Maryscott Greenwood, chief executive of the Canadian US Works Council.
Jesús Seade Kuri, Secretary for North America at the Mexican State Department, was in Washington last week to meet with lawmakers and lobby to cross the Nafta compensation. He told reporters at a press conference that Mexico did not intend to mix discussions on migration trade and avoided commenting on the autotarial threat.
But in an interview with a Mexican radio station on Friday, Seade laughed at the threat of auto tariffs. "It's talked about," he said, shouting. "The hot art".
That threat is also over Europe, South Korea and Japan, all major sources of imported cars to American consumers. The potential for US car prices has brought foreign officials to the negotiating table, with South Korea signing an updated trade agreement last year, and Europe and Japan are starting negotiations right now. But these calls may be more intended to receive temporary protection from Mr Trump's car tariffs than to break new trading grounds.
The CEO must decide to introduce auto tariffs by May 18, but he is able to exclude countries if you are currently negotiating with the United States. For some foreign officials, the wise choice has been to initiate limited negotiations with the United States, while hoping it will prevent any fees.