Trump Using Tariffs as Leverage in NAFTA Renegotiations With Mexico and Canada

After President Trump announced 25-percent tariffs on steel imports and 10-percent tariffs on aluminum imports last week, NTK Network asked: “how, if at all, does this impact NAFTA renegotiations between the U.S., Mexico, and Canada?”

On Monday morning, we saw at least a partial answer: quite a lot.

President Trump kicked off the week tweeting about the tariffs, and strongly suggesting that he sees the tariffs – which are supposed to go into effect this week – as leverage in America’s renegotiations of the North American Free Trade Agreement (NAFTA) with Mexico and Canada.

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

…treat our farmers much better. Highly restrictive. Mexico must do much more on stopping drugs from pouring into the U.S. They have not done what needs to be done. Millions of people addicted and dying.

— Donald J. Trump (@realDonaldTrump) March 5, 2018

To that effect, Reuters reported that the tariffs have cast a “shadow” over the last day of the current “round of NAFTA talks,” which will take place on Monday.