New North American Trade Agreement Settled

New North American Trade Agreement Settled

President Donald Trump has expressed his pleasure as a new deal has been struck between the US, Mexico, and Canada. Some view this as the best possible outcome for the situation while others claim that this sets a dangerous precedent. After all, these trade negotiations have been characterized by aggression and threats by the US.

Trump touted his victory in a televised address from the White House's Rose Garden today, stating that his hardline tactics forced our partners into making concessions, including increased dairy trade. 

"Without tariffs we wouldn't be talking about a deal," Trump said, comparing lawmakers and policy-makers who feared tariffs would backfire to "babies" lacking the stomach to confront trading partners.

"Because of the power of tariffs, in many cases, we won't even have to use them," he continued. "And in many cases, countries that are charging massive tariffs are eliminating them."

The steel tariffs on Canada and Mexico are still in place as part of the new deal, but Trump stated that talks are underway on a compromise that could involve replacing tariffs with quotas.

The 25 percent tariffs on imported steel have significantly added to production costs for automakers as the price of steel from all sources has increased more than 30 percent. Moreover, Trump is studying the possibility of imposing tariffs of up to 25 percent on imported autos and auto parts on the grounds of the potential national security threat they pose and the need to protect a domestic auto manufacturing base. Japan and the EU are under a moratorium from any potential tariffs while trade talks continue, but the White House has made it clear they could be imposed if its conditions aren't met.

With an atmosphere of uncertainty surrounding the future of international automotive trade and steel and aluminum prices skyrocketing, many fear that Trump has overstepped his bounds by threatening our trade partners into submission. Others say that this is the natural result of acquiescing to our partners for so long. Either way, I doubt that this will be the last we hear of this. It's doubtful that neither Mexico nor Canada will soon forget this rough treatment. 

Our partners at Service King Broadway in San Antonio, TX strive to provide you with informative and entertaining content.

Written By: Todd Hendrickson
Source: autonews.com