The Story
The US and Mexico are saying 'let's be trade friends again.'
Explain.
President Trump made a campaign promise to help US businesses and bring jobs back to US workers. He's been going about it by putting steel and aluminum tariffs on countries. And renegotiating NAFTA – the North American Free Trade Agreement. It's been a thing between the US, Mexico, and Canada since the '90s. It created the world's largest free-trade zone and does things like scrap most tariffs between the three countries. Trump has called it the "single worst trade deal" and says it's to blame for Americans losing jobs. He's also threatened to pull the US out of it. Now, he's saying 'turn my mic on, I've got an update.'
I'm listening…
Yesterday, the US and Mexico said they've come up with a tentative deal. One big update aims to boost US car manufacturing. But don't call it NAFTA. It's now the US-Mexico Trade Agreement. Which doesn't really have the same ring to it, but who asked us.
Where's Canada in all this?
TBD. It's getting in on the negotiations this week. But says it'll only sign a new agreement "that is good for Canada." Trump has threatened to hit the northern neighbor with more tariffs if it doesn't cooperate.
What are people saying?
Some say it's a step in the right direction in protecting US interests. Others say Canada is crucial in keeping free trade flowing in the area. Car manufacturers are saying 'let's make sure we can find a balance between high production and affordable cars.' Wall Street is saying 'seems like progress, we'll take it.'
So what's next?
Mexico very much wants Canada on board. So here's what could happen. One: Canada signs on and the deal would likely be a go. Two: Canada says 'nope, we're good' and this new deal could crumble.
Who's the loser in all this?
Speakerphones.
theSkimm
After about a year of negotiating, the Trump admin is claiming this as a big win. But the deal is far from a sure thing. And even once it is, Congress has to sign off on it.
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