Trump says auto tariffs would be ‘ruination’ of Canada

Canada's Foreign Minister Chrystia Freeland said discussions with US officials on the North American Free Trade Agreement are making progress

Canada's Foreign Minister Chrystia Freeland said discussions with US officials on the North American Free Trade Agreement are making progress

President Donald Trump has struck a trade deal with Mexico and threatened to push ahead without Canada, a move that would kill NAFTA, which covers $1.2 trillion in trade between the three countries, and further spook financial markets.

"The United States would rather have a trade deal with Canada, but it has to be a good deal, right". "In some countries, including Canada, a tax on cars would be the ruination of the country". That's how big it is. "At the moment, this is a negotiation, as you can see, between Canada and the United States, " she said Thursday.

Trump has notified Congress he intends to sign the trade deal reached last week with Mexico by the end of November, and officials said the text would be published by around October 1.

Larry Kudlow, the director of President Donald Trump's National Economic Council, laid that out in the plainest terms possible during a televised interview Friday morning, hours before talks ended between Foreign Affairs Minister Chrystia Freeland her USA counterpart, trade czar Robert Lighthizer.

Officials are meeting "24-7" and "when we find issues that need to be elevated to the ministerial level, that's where Ambassador Lighthizer and I need to talk", Freeland said, adding that "there continues to be a lot of goodwill and good faith on both sides".

Trudeau said earlier in the week that he would be willing to give incremental ground on dairy, while preserving Canada's protectionist supply management system, if the USA were willing to make its own concessions.

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Sen. Doug Jones, D-Ala., joins Americans who work for worldwide auto companies to demonstrate against trade tariffs they say will negatively impact US auto manufacturing, on Capitol Hill in Washington, July 19, 2018.

"The word that continues to block the deal is: M-I-L-K", Kudlow said during an appearance on Fox Business.

Canada and the USA have been negotiating since early last week, when Washington unveiled a proposed North American free-trade deal with Mexico and pressed Canada to sign on. Freeland has said there's progress, but that no deal is done until it's done.

Canadian Prime Minister Justin Trudeau identified two "red lines" this week.

The President raised the pressure at a rally in North Dakota, warning that he would destroy Canada's economy with a 25-per-cent tariff on imported vehicles if there is no NAFTA deal.

Freeland expressed optimism late Wednesday. Milk, dairy, drop the barriers, give our farmers a break and we can fix some other things.' So I want to predict.

"When the President threatens to ruin Canada, to be clear, he's threatening to ruin the American auto business", said Flavio Volpe, head of the industry group for Canadian auto parts makers.

"From what we understand, the USA not only wants access to the market, but that even the exports to the USA or anywhere stop altogether", he said from Washington on Friday.

The Trump administration gave notice August 31 of intent to sign a trade deal with Mexico in the next 90 days, which could include Canada "if it's willing". These can help us to understand what could happen after Brexit in a UK-US negotiation. He covers USA politics and current affairs.

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