NAFTA is Suddenly in Doubt, and Canada Reels

Posted August 30, 2018

Under Economic Issues, International Trade Issues

(Catherine Porter – New York Times)

First the American president started a trade war with Canada, one of the United States’ closest allies and trading partners, imposing tariffs on the country’s steel and aluminum. Then, he called Prime Minister Justin Trudeau “very dishonest and weak,” shattering what was expected to be his moment of glory on the world stage at the Group of 7 conference in Quebec.

Now, President Trump has gone behind Canada’s back and negotiated what he calls a trade deal with Mexico, leaving Canada on the sidelines. He has also threatened to impose hefty tariffs on cars, one of Canada’s most important exports.

The power play has sent the country reeling, with trade lawyers trying to gauge how much of Mr. Trump’s threat was negotiation bluster versus directive, and economists sorting through what a world without the North American Free Trade Agreement would mean for Canada. Click here to read more.