Published: Thu, April 27, 2017
Business | By Max Garcia

Trump says NAFTA deal with Canada, Mexico, is 'very possible'

President Donald Trump could sign an executive order withdrawing the United States from the North American Free Trade Agreement in a move that could have widespread effects on the auto industry. Perhaps most significantly, vehicles manufactured in Canada and Mexico which are imported into the United States, may be subject to significantly higher taxes (up to 35 per cent), inevitably increasing the prices of these vehicles for USA consumers, as reported by Autonews. "It is an honor to deal with both President Peña Nieto and Prime Minister Trudeau, and I believe that the end result will make all three countries stronger and better", Trump was quoted as saying in the statement.

Relations between the United States and Mexico have seen "enormous progress" during the first months of the administration of U.S. President Donald Trump, Mexican Foreign Minister Luis Videgaray said on Thursday.

The announcement, which was unexpected, boosted the currencies of Mexico and Canada, helping them to claw back losses that had been incurred by media speculation that Trump was going to sign an executive order ending the trade deal.

Trump's comments came one day after he told the leaders of Canada and Mexico that he would not end the trade agreement now.

According to Trump, the two leaders called and asked him to consider renegotiating NAFTA, instead of terminating the trade deal.

"It is my privilege to bring NAFTA up to date through renegotiation", Trump said in a written statement that accompanied the White House readout of the phone calls.

White House Press Secretary Sean Spicer declined to comment on the order, which was first reported by Politico. I think NAFTA has been a catastrophic trade deal for the United States, trading agreement for the United States. But that official said NAFTA has been a top priority for the president since day one and said the administration has been working on it since taking office.

The Trump administration last month submitted a vague set of guidelines to Congress for renegotiating NAFTA, disappointing those who were expecting Trump to demand a major overhaul.

The letter spelled out few details and stuck with broad principles.

Many Republicans, including Senator John McCain, had cautioned Trump not to pull out from Nafta.

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