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Trump Threatens to Pull Out of NAFTA Ahead of New Pact
President Donald Trump says he will terminate U.S. participation in the North American Free Trade Agreement “shortly,” thereby giving Congress six months in which to ratify a proposed replacement.
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President Donald Trump says he will terminate U.S. participation in the North American Free Trade Agreement “shortly,” thereby giving Congress six months in which to ratify a proposed replacement.
The move, a surprise to many of Trump’s economic advisors, is intended to cut short demands by Democrats to reopen talks over the tentative U.S.-Mexico-Canada Agreement signed by the three countries at the end of September.
Without a treaty accord by then, NAFTA and USMCA both would be void, presumably ending 25 years of relatively open trade within the region. Carmakers have warned of massive disruption to their North American supply chains if that happens.
But Trump insists to reporters that the demise of regional free trade would work “very well” for the U.S. Democrats, who now control the House of Representatives, have vowed a fight over elements of USMCA that relate to protecting U.S. jobs and forcing Mexico to raises the wages of its auto workers.
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