President Donald Trump announced on Wednesday that the United States might not renew its free trade agreement with Canada and Mexico. Speaking at the White House, the president criticized trade deficits with both nations.
Trump stated he is currently discussing the matter with Mexican and Canadian leaders. His comments set the stage for potentially months or years of negotiations over provisions governing key industries, including automobiles.
The president's remarks come at a crucial moment in renewal talks between the three countries. Without a commitment by July 1, the trade deal would face annual reviews of its status and could possibly expire in 2036.
While the president has flexed his power to scrap the agreement, there are reasons to doubt that he would actually follow through on the threat.