President Trump is navigating a narrow path through a minefield of foreign and domestic opposition to his preferred trade position on the USMCA. Ironically, or not, on the issue of ending the USMCA we likely have more allies in the labor unions and Bernie Bros than we do amid the congressional republicans.
President Trump was asked again today about his position on the USMCA against the backdrop of a hot-mic moment when Canadian Prime Minister Mark Carney was telling him about caps on Chinese EVs coming into Canada. [Prompted]
“I would rather not have the USMCA. The primary reason I wanted it was because there was no way out of NAFTA, which was the worst trade agreement ever made — like, ever — and they had no termination… I would prefer not having an agreement, but I’m open to doing it.”
Several desperate Canadian trade watchers have framed President Trump’s “that’s good” response to Carney as if Trump was approving of the Chinese EV deal. Again, folks are just not looking at Trump’s position through the correct lens.
Trump doesn’t care about the issue. Trump is ambivalent to the issue. It’s the same mindset Trump has carried throughout all questions and comments since the questions were first raised.
The reason for Trump’s ambivalence about the granular, sectoral questions is simply because in the big picture of Trump’s outlook, he doesn’t plan on staying in a trilateral trade deal. Any bilateral trade deal Canada makes with a trade partner is perfectly okay, because Canada is not going to be connected to the USA in a trilateral obligation.
President Trump tells you his intention, then reminds himself of the opposition to his intention, then softens the original statement against the context of domestic political challenge he understands he has to overcome. This outlook is often expressed similarly in the comments of U.S. Trade Representative (USTR) Jamieson Greer.
Think of the scenario like a divorce. The ex-wife says to Trump, “I’m buying an EV.” Trump responds. “that’s good,” from a position they are no longer in a relationship, and he simply just doesn’t care.
Fully invested in the USMCA, Mark Carney says, “we put a limit of 49,000 EVs on the trade agreement with China.” Completely ambivalent Trump responds, “that’s good.” It’s a generic throwaway response because Trump no longer considers the USA and Canada to be in alignment or meshed in a trilateral agreement.
That’s why, when questioned, President Trump didn’t even recall the moment, yet he is being asked about it because it’s the most important thing on the mind of the Canadian side. It’s a little bit funny – but totally Trump.
Soon, when the USMCA moment circles around to the 12 o’clock position of immediate action, Trump will just turn to Jamison Greer and say, “ok, tell them we’re done now.” That’s it. Figure out the way to exit legally, let’s get out of this thing and start working on the optimal solution of a bilateral trade agreement with Canada.
The remarks today are the umpteenth time President Trump has repeated that the USMCA was the optimal way to get out of the quicksand NAFTA trade agreement. Once that NAFTA break was finished, the inherent value of the USMCA ended. Now Trump wants to end the USMCA and get to the core approach he has mentioned for over a decade; two bilateral trade agreements – one with Mexico and one with Canada.
Good day to donate. Lot of work going on here! 🙂
Promise it wasn’t a setup getting the first post! AND beat Mrs. Sunshine! (off to buy a lottery ticket). LOL
Carney is Brookshire. In his mind he is the next Birk/Hath. He is stealing Canada blind; unfortunatly, there is not much left. lt may be green but it is not greenbacks. Dreamers.
Canadian denial isn’t just a river in Egypt.
Canadians voted for this and they had a choice with Pierre Poilievre who was actually 40 points ahead in early polls. Now, some folks will scream that he is no different than Carney or Sparkle Socks but that’s not the case!
Why do we need a trade agreement with Canada?
We do NOT need one!
The Canadians are far too much in love with the Chinese Dragon.
I begin to think that the Mexicans, meanwhile, are finally beginning to wise up.
Dragons, after all, have exactly one intention: They intend to eat you, or, as the case may be, to burn you to a crisp.
Canada is in a desperate situation they created. Now they’re very weak.
I love my president, but I don’t know why we’re renegotiating his signature achievement from just six or seven years ago?
Because Canada is a repackaged of Chinese goods.
They toss a maple leaf over the panda and they get product into america.with out tariff . Canada’s margin becomes a portion of the tariff that otherwise China would pay.
USMCA Trade agreement in Trump’s first term was his signature agreement at that time because it gave him the path necessary to get to where we are today. Pres Trump can now move forward however he wants in USMCA to achieve his goals not the globalist’s goals
The few Canadians I’ve spoken with are fine with no deal. Carney has told them that all the new trading partners will make up for the loss of USA trade. They even go on to say they should stop the electricity and oil that flows into the USA as retribution for rejecting Canada.
In other words, they’re willing to shoot themselves in the foot in an attempt to hurt the USA.
Precisely. President Trump wants to excise USA from these unfavorable business deals with nations. He sees the bad deals and knows how to clear the runway!