The president wants to begin renegotiating a U.S. trade deal with Canada and Mexico earlier than a scheduled 2026 review, people familiar with his thinking said.
The Trump administration intends to push to renegotiate the U.S. trade deal with Canada and Mexico ahead of a required 2026 review of it, seeking to shore up U.S. auto jobs and counter Chinese firms that are making inroads into the Mexican auto sector, people familiar with the deliberations said.
The U.S.-Mexico-Canada Agreement, which Mr. Trump signed in 2020, required the three countries to hold a “joint review” of the deal after six years, on July 1, 2026. But Mr. Trump intends to begin those negotiations sooner, according to the people, who spoke on the condition of anonymity to discuss plans that had not been made public.
Trump officials particularly want to tighten the pact’s rules governing the auto sector, to try to discourage auto factories from leaving the United States, they said. They are also seeking to block Chinese companies making cars and auto parts from being able to export to the United States through factories in Mexico.
Mr. Trump has also threatened to impose a 25 percent tariff on products from Canada and Mexico, saying those countries are allowing drugs and migrants to flow across American borders. Speaking from the Oval Office on Monday night after his inauguration, he said he planned to move forward with the tariffs on Feb. 1.
Members of the Trump team believe that Mexico has been violating the terms of a separate agreement to limit metal exports to the United States, and they are eager to show the Mexican government that they mean to take action against such trade violations, one person familiar with the conversations said.
The Wall Street Journal earlier reported that Mr. Trump was pushing for an early renegotiation of his North American trade deal. The three countries are required to meet to discuss the terms of the trade deal six years after the agreement went into force, but trade experts have expected the Trump team to speed up work on the issue.
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Source: Economy - nytimes.com