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Trump may have doomed North American free trade deal

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Goldman:
Goldman: "Good chance" this leads to NAFTA withdrawal   7 Hours Ago | 00:48   

President Donald Trump's declaration of broad tariffs on imported steel and aluminum complicates North American trade talks and threatens to doom them altogether.

Negotiators have been meeting in Mexico this week in the seventh round of talks aimed at revamping and modernizing the 24-year old North American Free Trade Agreement. On Monday, trade representatives from the three countries are expected to comment on their progress.

But now NAFTA is caught in the middle of what could rapidly become an ugly global tit for tat against U.S. trade actions. The European Union has already threatened tariffs on American jeans, bourbon and motorcycles, and other countries have said they could retaliate.

"The key question people are asking is whether this is a signal that the administration is sending on all trade relationships," said Carlos Pascual, senior vice president, IHS Markit. "Clearly, both the U.S. and Mexico have a great deal at stake" in the access they have to each other's markets.


Source :- cnbc
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