US President Trump threatens auto tariffs against Canada if trade talks fail

Canada warns the U.S. it will strike back if it imposes tariffs on the Canadian auto industry

Canada warns the U.S. it will strike back if it imposes tariffs on the Canadian auto industry

He described the newly elected Mexican president as "an absolute gentleman". He has also made repeated threats to apply far more damaging tariffs on the deeply integrated automotive sector. There have been warnings Canada could be put in a position where it might have to accept a deal reached between the USA and Mexico.

Trump late on Friday tweeted that a "deal with Mexico is coming along nicely". He says the country's "Tariffs and Trade Barriers are far too high" and is threatening to "tax cars if we can't make a deal! And then the idea will be can we get a big trade deal prior to [Donald Trump's] next election" in 2020, Farley said.

"Canada must wait", Trump posted.

Trump took a different tact, however, with Canada.

The U.S. leader also had kind words for incoming Mexican president Andres Manuel Lopez Obrador who takes office in December.

Canada's foreign minister recently said the country is ready to resume NAFTA talks "as quickly and intensively as possible".

But Canadian officials have insisted Ottawa hasn't been sidelined during the U.S. -Mexico discussions, arguing there have been lots of bilateral talks between NAFTA partners during the year-long renegotiation process.

"But as I said before: nothing is closed until everything is closed".

Speaking as he left a meeting with the USA trade team in Washington, Ildefonso Guajardo said the return of Canada, the third country in the trillion dollar trade zone, would depend on solving bilateral elements in "the next few days or weeks". -Mexican issues were resolved, Canada could rejoin the talks to work on tri-lateral issues.

The U.S. -Mexico talks for a reworked North American Free Trade Agreement resumed three weeks ago, without Canada, after negotiations involving all three members of the $1.2 trillion trade bloc stalled in May. "And the answer is no, as long as the USA and Mexico have not resolved their issues, specifically auto".

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