NAFTA Updated with Changes That May Shift Auto Parts Jobs to North America; Steel Tariffs Remain
The U.S. and Canada came to agreement Sunday night on revisions to The North American Free Trade Agreement that could protect the U.S. auto industry from job-killing tariffs for building vehicles in Mexico and Canada.
The changes overall are incremental, and involves changes to autos, agriculture, intellectual property and other aspects of trade among the three countries. Markets reacted positively, sending the DJIA up 0.75 percent in mid-day trading.
Though the deal does not address steel and aluminum, currently subject to tariffs, the key part of the proposed deal is a mostly status-quo policy for automakers and auto-parts companies who manufacture in Canada and Mexico, though it will incentivize companies to source more parts from plants that pay their workers more. And it gets rid of tariffs that Trump was going to level on both countries.
Click to read more details from the Forbes article.