(L. Ian MacDonald – iPolitics)
There have been two major developments in the last week on the NAFTA renegotiation front, both of them coming from Donald Trump himself. In his crazy Art of the Deal mode, he’s saying—chaos is good, chaos works.
First, Trump has extended the exemption of Canada and Mexico from his 25-per-cent tariffs on steel and 10 per cent on aluminum to include the EU, Australia, South Korea, Brazil and Argentina. But he also announced a May 1 deadline for progress in NAFTA talks, failing which the White House says it will instead impose quotas “if necessary and appropriate.”
This is also about Trump declaring a trade war against China, imposing $50 billion of tariffs against a country with which the U.S. has a $350 billion trade deficit. Which is why the stock market tanked last week, along with another increase in the Fed reserve rate, causing the Dow to lose over 1,400 points, or 5.7 per cent of its value. Click here to read more.