Trump Threatens Tariffs on Canadian-Made Cars

Mexico says its bilateral NAFTA talks with U.S. to drag into next week

Trump appeared to be referring to efforts to renegotiate the North American Free Trade Agreement between the US, Mexico and Canada in his tweet from his golf club in Bedminster, New Jersey. He described the newly elected Mexican president as "an absolute gentleman". "Will tax cars if we can't make a deal!"

Trump took a different tact, however, with Canada.

Mexico's Economy Minister said on Friday that bilateral talks with the United States over the future of the NAFTA trade deal will drag into next week, and the timing of Canada's return to the negotiations will depend on how fast they resolve issues.

Trump slapped Canada and other allies with steel and aluminum duties, which led to retaliatory levies from Ottawa.

Canada's foreign minister recently said the country is ready to resume NAFTA talks "as quickly and intensively as possible".

Media reports say today's meeting between U.S. Trade Representative Robert Lighthizer and Mexican Economy Minister Ildefonso Guajardo ended with bilateral work still to be done. "It's the only way we'll get to a deal".

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"But as I said before: nothing is closed until everything is closed".

In response, Canadian officials announced "dollar for dollar" retaliatory tariffs, as Prime Minister Justin Trudeau called them at the time, to the tune of over C$16 billion in USA imports.

Guajardo said that once bilateral U.S.

"The next obvious question is, do we have a firm date of Canada physically going to join the talks?" He said this could take place in "the next few days or weeks". There have been warnings Canada could be put in a position where it might have to accept a deal reached between the USA and Mexico.

Industry officials also said the US team had barely moved from its demands last May of a 75 percent overall regional content threshold with 40-45 percent content from high-wage zones - effectively the United States and Canada - with the only substantial change a slightly longer phase-in time.

Bilateral NAFTA negotiations between the USA and Mexico have been building momentum in recent weeks after taking a break in late May ahead of Mexico's July presidential election.

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