Trump Plans to Impose Economic Penalties Against Canada, Auto Tariffs
Sept. 27, 2018
President Donald Trump said Wednesday he was planning to impose severe economic penalties against Canada if it does not agree to major changes in its trade policies.
September 27, 2018—Speaking at a press conference in New York, President Trump said he was planning to terminate the North American Free Trade Agreement and impose tariffs on automotive imports from Canada, reported The Mercury News and The Washington Post.
It’s unclear what this could mean for either economy or the trade relationship that connects thousands of companies in both countries, according to the report.
The White House now plans to submit a new proposed trade agreement between the U.S. and Mexico for Congress to begin reviewing as soon as this week. The White House wants this trade deal to replace NAFTA, though it’s unclear if it is legally possible to replace a three-country pact with a two-country arrangement.
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