President Donald Trump has canceled the “bad deal” that was NAFTA and negotiated a new trade deal with Mexico. And now Canada is on notice that it better do the same or face a trade war.
Trump announced the new bilateral trade deal on Monday, Breitbart News reported:
“It’s a big day for trade, big day for our country, a lot of people though we’d never get here because we all negotiate tough. We do, so does Mexico,” said Trump.
Trump told reporters he wanted to do away with the name NAFTA (North American Free Trade Agreement) in favor of a new trade deal, The United States México trade agreement. He said the name NAFTA has a bad connotation because the U.S. has been hurt badly by it. He called the new deal a really good deal for both countries, the U.S. and Mexico.
He added, “we’ll see if Canada can be part of deal.” President Trump spoke of possibly making a separate bilateral trade deal with Canada and that negotiations on that would start soon.
Mexican President Enrique Peña Nieto joined the group by phone for the announcement.
In the room with Trump were U.S. Trade Representative Robert Lighthizer, Mexico’s Foreign Minister Luis Videgaray Caso, and Mexico’s Economic Minister Ildefonso Guajardo. Chief of Staff John Kelly, National Security Advisor John Bolton, and Senior Advisor to the President Jared Kushner.
On Monday, President Nieto thanked President Trump and said the deal is “very positive for the United States and Mexico.” Nieto added that the announcement call was to “celebrate the understanding that [they] have had between both negotiating team on NAFTA.”
The new deal comes after months of Trump’s pronouncements about how America has been on the losing end of every trade deal for decades. Trump has threatened tariffs and sanctions against a long list of American trading partners as an inducement to re-negotiate our trade deals.
So far, his tactics have worked. First the Chinese and now the Mexicans have worked with Trump to re-negotiate our trade deals.
Naturally, the Never Trumpers have warned over and over again that Trump’s tactics will hurt the U.S. economy. Thus far, though, their prognostications have come to nothing. Trump is still winning.
Follow Warner Todd Huston on Twitter @warnerthuston.
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