Trump China deal
“Without the tariffs, we wouldn’t be talking,” Mr. Trump said in an interview with The New York Times
“trade deal with China will have to address not only what he called the chronic U.S. trade deficit but also changes in Chinese policies to protect American workers and businesses.” (src: bloomberg.com)
New Trump Mexico Canada deal
NAFTA was good for CEOs but catastrophic for US workers that (if they did not lose their job to China) lost their job to Mexico.
It’s an interesting talk.
Of course it is good if more cars in the US are actually made in the US, even if they are probably more expensive then.
it will take effect on January 1, 2020
“the U.S. has indicated it will no longer look to impose a 25 per cent tariff on motor vehicles made in Canada”
“many of its chapters cover the same or similar issues and many of the provisions are unchanged”
“The USMCA also contains key changes. In particular, the USMCA increases the required level of local content of automobiles and auto parts for auto exporters in Canada or Mexico to export automobiles tariff-free to the U.S. Canada also made concessions on supply-managed markets, including by opening up a portion of its dairy market to U.S. imports. In the oil and gas industry, Canada will no longer be subject to the proportionality provisions in NAFTA’s energy chapter, which should permit the expansion of oil and gas exports beyond the U.S., and a change to the oil and gas rules of origin will allow Canadian exporters to more easily qualify for duty-free treatment for shipments to the U.S.
Overall, the USMCA appears to satisfy certain objectives of the U.S., Canada, and Mexico, and more importantly, brings to an end the uncertainty caused by the ongoing negotiations. If ratified, the USMCA will keep the economies of Canada, the U.S. and Mexico linked for the next 16 years.” (src: https://www.blakesbusinessclass.com)