As the relationship between Trump and Trudeau continues to worsen, it's unclear what this could mean for either economy or the trade relationship that connects thousands of companies in both countries.
Trump said Wednesday that Trudeau had sought a meeting with him during the United Nations General Assembly in New York, but Trump refused to participate because he doesn't like how Canada was approaching the trade discussions.
A spokesperson for Trudeau, however, said this was not true and that Trudeau never sought a meeting with Trump during the New York gathering. The spokesperson declined further comment on Trump's press conference.
Trump and several of his top aides have said Canadians were refusing to rework NAFTA because they want to continue protecting their local dairy industry through a controversial management program. But Canadian officials have said that multiple other issues remained unresolved, including Trump's repeated threat to impose tariffs on auto imports.
Trudeau, speaking in New York on Monday, said he was open to redoing NAFTA but only if it made sense for Canadians.
"My focus on this throughout has been simply not escalating," Trudeau said Monday. "Not opining. Not weighing in. My job is very simple. It's to defend Canada's interests, stand up for Canadians."
Trump's comments on Wednesday made it clear he wasn't expecting any breakthrough in the coming days.
"We're unhappy with the negotiations and the negotiating style from Canada," he said.
The White House now plans to submit a new proposed trade agreement between the U.S. and Mexico for Congress to begin reviewing as soon as this week. The White House wants this trade deal to replace NAFTA, though it's unclear if it is legally possible to replace a three-country pact with a two-country arrangement. A number of lawmakers from both parties have pleaded with the White House to try and ensure Canada remains in the talks.
During trade discussions, Trump often seeks to create leverage over other countries by threatening tariffs, and that's the approach he used on Wednesday. He said he would impose tariffs on all of Canada's automotive and auto part imports if they don't agree to unrelated changes to NAFTA.
That could end up hurting U.S. auto companies that make cars in Canada and buy auto parts from Canada. Tariffs are paid by importers of products, not foreign countries, and U.S. business executives have said they will likely be forced to pass these costs on to consumers.
But Trump didn't seem phased by this.
"If Canada doesn't make a deal with us, we're going to make a much better deal," he said. "We are going to tax the cars that come in. We will put billions and billions of dollars into our Treasury."
He also repeated the promise that any new trade deal would no longer have the name NAFTA.
"I'm not going to use the name 'NAFTA,' " he said. "I refuse to use it."
Trump's comments on Wednesday were just the latest in a string of attacks he has levelled against Trudeau and Canada this year. In June, Trump called Trudeau "indignant" and suggested he wasn't being fair to the United States.
That led Trudeau to suggest that Trump was trying to bully Canada June during a June meeting of the Group of 7 leading economies.
"Canadians, we're polite, we're reasonable, but we also will not be pushed around," Trudeau said at the time.
This enraged Trump, who tried to retroactively withdraw from a joint statement that was issued at the conclusion of the summit.
- Washington Post
