Trump begins NAFTA negotiationsBy Mike Finnegan | 01/22/2017 11:57pm
Following up on his anti-NAFTA campaign, President Trump said on Sunday he has scheduled meetings with Canadian Prime Minister Justin Trudeau and Mexican President Enrique Peña Nieto.
Meeting with the other countries of the North American Free Trade Agreement is an important step in backing out of or recreating the pact. The Trump administration’s ability to work with Congress to terminate or recreate the deal is equally important.
The Trump administration has also expressed desire to restructure the Trans-Pacific Partnership. The 12-nation trade deal has yet to be fully signed into law. This would make it easy for Trump to strike down.
The President suggested replacing trade deals with tariffs, the reason being the tariffs the United States would impose on other countries would encourage purchasing domestic goods over foreign products, stimulating the U.S. economy. The flip side of the argument is retaliatory tariffs would be imposed on the U.S., constricting American companies’ access to foreign markets.
Trump proposed that the tariffs collected from Mexico would go toward funding the wall along the U.S.-Mexico border that was discussed throughout the election.