Market Monday – Trump’s NAFTA Trap on Trudeau
Should you be worried about NAFTA falling apart?
I’ve said it before — I think Canada has a pretty solid team on the NAFTA negotiating table (Despite the look on Chrystia Freeland’s (“What-are-you-thinking!?”) face.
That being said, there is a lot at stake, between Tariffs and the pending Trade “war”, and Canada is already feeling the pinch.
The upcoming war on Steel and Aluminum may be stealing the spotlight, but as I’ve mentioned before, 3 Canadian companies have already filed lawsuits against the US on 30% Tariffs on SOLAR Products! — Why isn’t that making news headlines!
We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed. Also, Canada must..
— Donald J. Trump (@realDonaldTrump) March 5, 2018
US President Donald Trump knows how to get attention! — Steel gets attention… Tariffs on BMW’s get attention. But the Trade negotiations that AREN’T on the front page are as important to Canadians as steel… we just don’t hear about it!
Donald Trump did they exact same thing to get his Tax bill passed in the US, he sets his number in the sand.. and then negotiates from there… seems to work for him.
US President Trump is giving a Negotiating lesson to Trudeau and the Canadian leaders.. By the way.. this type of Negotiating is called “Positional”… and is used when you don’t CARE about the other side.. Think USED CAR.. Or REAL ESTATE…..
Hmm… Real Estate… I wonder how he knows this?….
1. Set your high targets.. check…
2. Demand concessions…check
3. Let the other side ask for Exemptions… CHECK!! …
4. Dig into your price (soon to be “check” i’m sure!…)
5. Apply Pressure and/or Mislead
6. Make sure YOU win and you alone….
Did Canada publicly do the same… don’t think so… As I’ve said before, when were coming from a position of weakness (We NEED the pipelines to US since we don’t have other options at the moment.. we NEED the steel contracts… we NEED the automotive jobs) it’s easy for Donald to push out his chest and say ‘take my deal’.
Canadian Dollar weaker by the minute
American businesses reacted already today with a boost to the DOW after last weeks sell-off… Companies that NEED Steel like Caterpillar have rebounded on assumptions that a trade war won’t happen, and that Canada will fall-in-line…
Meanwhile on OUR side of the border, the Canadian dollar was trading 0.7 per cent lower at C$1.2976 to the US Dollar, or 77.07 U.S. cents. The currency touched its weakest since July 7, 2017 at C$1.2982.
American companies feel they are supported by the government, and Canadian Small businesses are just hoping to stay afloat… come on, leaders! Time for Action!
Trudeau and Team Focused on Trade
Don’t worry though – Our PM isn’t going to let Trade and the economy get overshadowed….
Lots of Canadians up for #Oscars again this year. Congratulations, good luck tonight and thank you for bringing your magic to the big screen.
— Justin Trudeau (@JustinTrudeau) March 4, 2018
That’s Your Market Monday.