Tariffs Throw Another Monkey Wrench Into NAFTA 2.0

The steel and aluminum tariffs imposed by President Trump last week threw another wrench into the already sensitive NAFTA talks.  Politico says the tariffs will further delay a final agreement between the three long-time trading partners.  The action also revives the possibility that Trump will once again possibly follow through on his threat to withdraw from NAFTA altogether.  That’s a move that will have serious economic consequences for all three economies.

Trump recently told Canadian Prime Minister Justin Trudeau that the “U.S. will sign a fair deal, or there will be no deal at all.”   Trudeau said the Trump administration has pressured him to accept a provision that would automatically terminate the agreement unless all three countries agreed to renew it. Trudeau refused to have his hand forced and canceled his plans to travel to Washington to finalize the deal if that was going to be the condition.

The conservative group, American Action Forum, says the president thinks being “tactically unpredictable is a fantastic approach.” The group says he fails to realize that strategy only confuses people, damages important relationships, and the president shoots himself in the foot on the economy during a time when regulatory and tax reform is doing so well.​

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com