Trump Praises Mexico, Threatens Canada With Tariffs On Cars

President Trump says deal with Mexico moving nicely but Canada must wait, barriers too high.

The Wall Street Journal reports Trump Threatens Tariffs on Canadian-Made Cars.

U.S. officials met Mexican counterparts in Washington [on Friday] to resolve disagreements between the two countries on Nafta. The Trump administration has sought to portray Canada as dragging its feet in talks, part of what observers say is an effort to put pressure on Ottawa to make trade concessions.

While he praised Mexico’s president-elect, Andrés Manuel López Obrador, in Friday’s tweet, Mr. Trump went on to criticize Canada, saying its “Tariffs and Trade Barriers are far too high” and “Will tax cars if we can’t make a deal!”

Applying special tariffs to cars made in Canada would end decades of preferential treatment between the two neighbors through deals that predated Nafta. Detroit is heavily reliant on parts made nearby in Ontario, and Canadian cars trade duty free under Nafta if they meet certain rules that the U.S. wants to toughen.

Mr. Trump had most frequently threatened to apply tariffs to European or German cars, but last month he announced a trade truce with the European Union, part of an effort to negotiate a deal that lowers trade barriers between the U.S. and Europe.

Any effort to dislodge Canada from a final Nafta deal or impose special tariffs on Canadian cars would see opposition from the American auto industry, consumers and many U.S. lawmakers.

Most Likely Outcome

Given the widespread opposition by US Senators and the auto industry itself the most likely outcome is that Canada will offer Trump some meaningless concession after which Trump will brag about how great a job he is doing.

This is precisely what happened as he backed off his threat to put tariffs on German cars.

Mike "Mish" Shedlock

Comments
No. 1-6
Realist
Realist

Actually, the problem is that if you try to make everything solely in the US, your industries would quickly become uncompetitive, and would soon be bankrupt. The lack of understanding of how the free market works is very sad.

ML1
ML1

That is the problem. Those parts should be made in American factories and Trump needs to tell car industry there will be big tariffs on car parts after 1 year so they bring production back to USA.

ML1
ML1

Trump is REALLY REALLY STUPID if Trump does NOT demand that as part of making a new version of NAFTA or other trade deal with Mexico that Mexico stops PUSHING migrants to USA:

1. Mexico STOPS movement through Mexico to USA so that Guatemalans, Hondurans, El Salvadorians, Nigaraguans and all others are told to either apply for asylum from Mexico or Mexico will return them back home. 2. Mexico builds a WALL on their southern border to stop migrants and STOP drugs. This will end the flow of migrants and drugs to USA and it will also destroy the cartels in Mexico and thereby REMOVE the cartel violence. 3. Mexico removes visa freedom to countries whose citizens fly to Mexico with the intention to getting to USA to seek asylum. 4. Mexico accepts all deportations and returns of Mexican migrants without any problem and Mexico government supports these people once they have been sent back to Mexico. 5. Mexico encourages people to stay in Mexico and messages to mexican people that trying to get to USA is not worth it.

channelstuffing
channelstuffing

pretending to reach commom ground,all bs,mexico manufacturers all our vehicle parts,unless he's prepared to close down car plants and force ford and gm into layoffs he'll just keep kissing mexico's ass!

2banana
2banana

Much better to get shafted on trade deals and not rock the boat. Maybe DJT can go on a few obama-like world apology tours to make up...

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